Raising Fund Through Institutional Placement & SPP: Dacian Gold Ltd (ASX: DCN) is raising approximately A$37 million through an institutional placement through the issue of approximately 13.7 million new DCN shares (6.7% of existing issued capital), with the ability to take oversubscriptions to raise up to an additional A$3 million. Further, there is an accompanying Share Purchase Plan (SPP) to raise up to A$5 million along with the Equity Raising or the Offer. DCN is raising fund at an offer price of A$2.70 per new share, which is 10.3% discount to the last closing price of 10th July 2018 (A$3.01). The funds raised from the Equity Raising will be used to fund accelerated exploration programs at Westralia and Cameron Well and extinguishment of the Jupiter mine royalty obligation. After the completion of the Institutional Placement, DCN will have approximately 219.5 million shares on issue and a pro forma cash balance of A$92 million. Moreover, DCN has designed the accelerated exploration programs to bring asset value forward by extending Westralia to potentially increase the mine life and production rates, and to potentially unlock Cameron Well to become Mt Morgans’ third mining hub. Additionally, during the June quarter, Mt Morgans has produced 34,155 ounces which is within the original guidance of 30,000-40,000 ounces, and is on track and fully funded to achieve commercial production in the December quarter and deliver production in the range of 180,000-210,000 ounces in FY19. Meanwhile, DCN stock has risen 7.50% in one month as on July 10, 2018.
Key dates for the Offer (Source: Company Reports)
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