- 3D Resources (DDD) has successfully completed an oversubscribed placement, raising over $2.1 million for the purchase of the Adelong gold project
- Over 1.7 billion shares were snapped up by sophisticated and professional investors under the offer, which was originally intended to raise $2 million
- Aside from the purchase of the Adelong project — which is due to settle this week — the money raised will be used for general working capital
- The company is also currently progressing an options offer to raise around $275,000 on top of the placement cash already raised
- This money will also be used for general working capital on 3D’s runway to first gold
- 3D Resources closed grey on Monday at 0.2 cents per share
3D Resources (DDD) has successfully completed an oversubscribed placement, raising over $2.1 million to fund the purchase of the Adelong gold project.
High demand overshoots target
Over 1.7 billion shares were snapped up by sophisticated and professional investors under the offer, which was originally intended to raise $2 million.
Shares were issued at a price of 0.125 cents per share, raising a total of $2,161,125 before costs.
Aside from the purchase of the Adelong project — which is due to settle this week — the money raised will be used for general working capital.
3D Resources Chairman Ian Hastings says the company is making great strides in its overall strategy.
“The acquisition of the Adelong gold project represents an important step in the transition of the company on its path to becom[ing] a producer.
3D Resources Chairman Ian Hastings
“This acquisition not only provides outstanding value but a wealth of opportunity for the future,” he added.
Onward and upward
3D has already made plans to advance work at Adelong as soon as possible after the acquisition is finalised.
The company has identified a preferred driller to commence work at the Donkey Hill target, which is set to begin in June.
This target lies around 1.7 kilometres from the Challenger mine. Historical drilling and magnetic surveys have identified a multiple vein system with some high-grade intercepts, along with other anomalous targets.
The Adelong acquisition marks a serious milestone on 3D’s journey from explorer to producer, with onsite infrastructure and a JORC Resource of 127,000 ounces of gold (over a third of which is in the measured category), plus further exploration upside all pointing toward a near-term exploitable resource.
The company is currently progressing an options offer to raise around $275,000 further to the placement cash already raised.
3D Resources is offering eligible shareholders over 275 million options at 0.1 cents per new option, exercisable at 0.5 cents and expiring in March 2022, on the basis of one new option for every one DDD option held on 15 December 2019 which expired unexercised.
This money will also be used for general working capital on 3D’s runway to first gold.
3D Resources closed grey on Monday at 0.2 cents per share.