Argonaut as Co-Lead Manager has been successful in raising of A$110 million for Dacian Gold Limited (ASX: DCN) (“Dacian”) via an institutional placement and a 1 for 3.1 Accelerated Non-Renounceable Entitlement Offer for approximately 55 million new ordinary shares at an issue price of A$2.00 per share, with Macquarie Capital (Australia) Limited.
Proceeds from the raising will contribute to the development of the Mt Morgans Gold Project (MMGT), located 20km south-west of Laverton in WA, following the release of the positive MMGP Feasibility Study and expansion Pre-Feasibility Study as well as for exploration expenditure, corporate expenditure, working capital and transaction costs. Post completion of the raising Dacian is fully funded to complete the construction of the MMGP through to production.
Commenting on the equity raising, Dacian’s Executive Chairman, Rohan Williams said: “The equity raising completes the last piece of the funding package required to complete the construction of the Mt Morgans Gold Project through to first gold production. We can now focus all our attention on continuing project construction and mine development at Westralia and Jupiter, keeping us on track to achieve first gold production in Q1 CY2018.
It will also fund continued exploration targeting more discoveries on our extensive and highly prospective land-holding at Mt Morgans, where we see significant potential to continue to grow our gold inventory.”
Argonaut is delighted to provide ongoing support to Dacian, having successfully led its $20M IPO in 2012 and its $25M capital raising in 2015. We look forward to continuing to work with Dacian.
Additional information regarding Dacian and the Capital Raising can be found on the company’s website at www.daciangold.com.au.