PERTH (miningweekly.com) – ASX-listed junior Dreadnought Resources is hoping to raise A$12-million to fund exploration work at its Mangaroon rare earths project, in Western Australia.
The company on Monday said it had received firm commitments for the placement of 200-million new shares, at a price of 6c each, representing a 7.7% discount to Dreadnought’s last trading price, and a 0.8% premium to the company’s ten-day volume weighted average share price.
The share placement will be done under the company’s existing placement capacity and will not require shareholder approval.
In addition to the placement, the company’s directors have committed to subscribe for A$350 000 of new shares, also at an issue price of 6c each.
“The rapid progress at the large-scale, high-grade Yin discovery requires an acceleration of our activities. As does testing of the potential game-changing prospects around Yin which include the possible source of the regional rare earths being the five carbonatites," said Dreadnought MD Dean Tuck.
“An initial Joint Ore Reserves Committee (Jorc) resource at Yin will provide confirmation as to the scale and grade potential at Yin. We expect ongoing testing at Yin and our other ironstones to contribute to significant growth of the company’s upcoming maiden Jorc resource. The company will also progress activities at its other projects, which are showing considerable promise as ongoing exploration continues.”