Dreadnought Resources (ASX:DRE) is tapping investors for up to $10 million through a placement and share purchase plan (SPP), with new shares to be issued at $0.047.
The $157.8 million market capitalisation company says it has received firm commitments to raise $5 million through the placement, which will comprise the issue of about 106 million new fully paid ordinary shares. The $0.047 price tag represents a 12.3% discount to the company’s 5-day volume weighted average price (VWAP).
Dreadnought’s board will be participating in the placement for $1.04 million, and the company says this brings its total board investment to $6.2 million.
The completion of the placement is expected to occur on or around 9 October 2023.
Shaw and Partners acted as the Sole Lead Manager to the placement.
Meanwhile, under the SPP, eligible shareholders will be able to subscribe for up to $30,000 worth of new shares at the same price as the placement. Dreadnought is seeking a maximum of $5 million through the SPP and has encouraged shareholders who wish to participate to act ‘promptly’, as the board reserves the right to close the SPP early and without notice.
The funds raised from the placement and SPP will be used for diamond and reverse circulation (RC) drilling at Dreadnought’s Tarraji-Yampi Project, RC drilling at the Mangaroon REE and Gold Project, and RC drilling at the Central Yilgarn Project, as well as further target generation and definition across all projects.
Commenting on the placement and SPP, Dreadnought Resources Managing Director Dean Tuck says: “With this funding, we will progress all of our projects, promising a steady and exciting newsflow for the remainder of 2023 and 2024.”
“With this funding, we will progress all of our projects, promising a steady and exciting newsflow for the remainder of 2023 and 2024″
Dreadnought is a diversified exploration company with 4 Western Australian projects providing a mix of geological terrains and target commodities. The company’s portfolio of assets includes the Kimberley, Mangaroon, Central Yilgarn, and Bresnahan projects.
Write to Aaliyah Rogan at Mining.com.au
Images: Dreadnought Resources
