Dacian Gold (ASX:DCN) has announced that is has successfully completed a $20 million share placement to fund work at its 100%-owned Mt Morgans Gold Operation near Laverton, Western Australia.
The company reports that the placement, announced on the 2nd of December, was conducted at $0.17 per new share and was well-supported by existing and new institutional shareholders.
“We appreciate the support from existing and new shareholders as we look to invest the proceeds into the ground at Jupiter with our exploration program and support our investment at Doublejay”
Speaking on the news, Dacian Gold Managing Director Leigh Junk said: “We appreciate the support from existing and new shareholders as we look to invest the proceeds into the ground at Jupiter with our exploration program and support our investment at Doublejay where we are targeting positive cash flow during the March quarter.”
Funding from the placement, which will assist Dacian in delivering on its FY22 guidance, will focus on work at both the Doublejay open pit, and step-out drilling at the project’s Jupiter prospect.
Pre-stripping work at Doublejay is expected to conclude by March 2022, with mining of thicker and higher-grade orebody commencing in March.
This will be accompanied by an accelerated extensional exploration program at Jupiter, following ‘compelling’ drilling results that underscored the size and scale of the prospect. An initial 9 holes totalling 7,500m is planned, and will be completed with the addition of a second diamond drill rig.
The company notes that upon settlement of the placement, Dacian will hold $36.8 million in cash reserves plus gold-on-hand, before costs.
Images: Dacian Gold Ltd