PERTH (miningweekly.com) – Junior Dampier Gold will raise A$6-million in a two tranche share placement to fund gold exploration in Kalgoorlie.
The company this week noted that some 109.1-million new fully paid ordinary shares would be issued at a price of 5.5c each, along with one free attaching unlisted option for every three shares subscribed for, exercisable at 10c each and expiring at the end of January 2023.
The first tranche placement of some 44.5-million shares will be made under Dampier Gold’s existing placement capacity, while the second tranche placement of 64.6-million shares would be subject to shareholder approval, with a meeting scheduled for mid-January.
Dampier told shareholders this week that the placement has been strongly supported by Australian and offshore institutional and strategic investors, with the book build value significantly exceeding the placement amount.
“The strong demand from institutional and strategic investors reflects the quality of Dampier’s projects, its tier 1 location and immense potential for future growth,” said MD Annie Guo.
“Over the past six months, Dampier’s exploration team has propelled Dampier from an early stage explorer to a company with the potential to enhance existing resources and with multiple drill targets. This early exploration success confirms the significant potential of Dampier’s asset portfolio and the ability of its skilled and committed exploration team.”
Funds raised will be used to fund drilling and other exploration activities at the company’s Zuleika Shear, Credo, Goongarrie, Menzies and Ruby Plains gold projects, as well as for general project-related working capital.