- Silica sands producer Diatreme Resources (DRX) has closed its share purchase plan (SPP), receiving applications for more than eight times the planned amount
- The company originally planned to raise $500,000 under the SPP but received applications totalling $2.53 million
- All up, 253 million shares will now be issued to participants at one cent each, while scale backs have been applied
- Diatreme will use the money to speed-up the development of its Galalar Silica Project in Queensland
- Company shares have dropped 13.2 per cent and are currently trading for 1.7 cents
Diatreme Resources (DRX) has closed its share purchase plan (SPP), receiving applications for more than eight times the planned amount.
The silica sands producer originally planned to raise $500,000 under the SPP but received applications totalling $2.53 million.
All up, 253 million shares will now be issued to participants at one cent each, while scale backs have been applied.
Those who applied for $2500 worth of shares will receive their full amount, while those who applied for between $5000 and $30,000 will be subject to a 43 per cent discount.
Shares are expected to be issued on or around November 12, with quotation on November 16.
Coupled with its recently completed placement, Diatreme has around $7.1 million in cash reserves, which it will use to speed-up development at its Galalar Silica Project.
The Galalar Silica Project is located 200 kilometres north of Cairns and 20 kilometres north of Cooktown in northern Queensland.
Bulk testing has confirmed the project’s ability to produce a world-class silica sand product at 99.9 per cent silicon dioxide.
“We are delighted with the overwhelming response and show of support received from our shareholders wishing to participate in the SPP,” Chairman Greg Starr said.
“The funds will enable us to accelerate our implementation strategy as we work to advance our Galalar project. Diatreme is now well placed to achieve its targets for the year ahead and deliver increased value for shareholders,” he added.
Diatreme has dropped 13.2 per cent and shares are trading for 1.7 cents at 1:22 pm AEDT.