PERTH (miningweekly.com) – ASX-listed Diatreme Resources will raise A$10-million through a share placement to sophisticated and professional investors to fund work at its Galalar silica sands project, in Queensland.
The company on Monday said that it would place 435-million fully paid ordinary shares at a price of 2.3c each, which represented an 11.5% discount to the company’s last closing price, and a 16% discount to its 15-day volume weighted average share price.
The share placement will be conducted under Diatreme’s existing placement capacity, and will not require shareholder approval.
“Diatreme appreciates the strong support of our shareholders and welcomes new strategic and professional investors to our register, following this significant investment in the future of our company,” said CEO Neil McIntyre.
“We continue to advance the Galalar project at a rapid pace in this world-class silica province, with previous results showing our ability to produce premium-grade silica for fast-growing Asian markets.
“Diatreme is advancing rapidly now and we look forward to achieving our goal of becoming a significant near-term low cost and premium silica producer supplying the Asia-Pacific solar energy boom.”
Funds raised will go towards the delivery of a maiden ore reserve and an improved mineral resource, consistent with the proposed mining plan programme, the delivery of a prefeasibility study, followed by a definitive feasibility study, finalising permitting and approvals, early site works, exploration and for general working capital.