Dacian Gold announced that it has raised nearly AUD40m ($31m) through institutional share placement to accelerate its exploration and development activities at its Western Australian assets.
The gold development and exploration company had completed a fully underwritten two-tranche institutional placement of nearly 142.9 million new fully paid shares at an offer price of AUD0.28 ($0.22) per share.
The placement was supported by the company’s existing shareholders and had seen the participation of various new investors, said the Australian miner.
Dacian Gold managing director Leigh Junk said: “We are very pleased with the equity raising result and thank our existing shareholders for their ongoing support and welcome the new shareholders to the register.
“Dacian looks forward to pursuing its three pillar growth strategy, focused on exploration success and advancing further deposits into production.”
Dacian Gold will use the proceeds to expedite a drill programme of about 300,000m across the Mt Morgans and Redcliffe gold projects.
The Australian miner will mainly target new, base load opportunities at the deposits.
Dacian Gold also plans to advance the Redcliffe deposits into production with the Hub, GTS, and Nambi open pits.
Additionally, the company will use the proceeds for restarting underground production from the Greater Westralia Mining Area with the Beresford, Allanson, and Craic underground mines.
The company plans to include the underground ore extracted from the Greater Westralia Mining Area in the Mt Morgans processing plant, thereby providing supplemental ore feed.
The Australian miner has also announced that it will undertake a share purchase plan for raising an additional AUD5m ($3.87m) at AUD0.28 ($0.22) per share.
Currently, the company’s 100% owned Mt Morgans open pit operation yields nearly 110,000-120,000oz from the Heffernans, Doublejay, and Mt Marven deposits.
