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Diatreme Resources (ASX:DRX) enters a trading halt amid capital raise

ASX News, Mining
ASX:DRX      MCAP $110.1M
23 June 2022 16:36 (AEDT)

Drilling at Galalar Project. Source: Diatreme Resources

Diatreme Resources (DRX) has entered into a trading halt as it plans a capital raise.

It is currently not known how much the company is aiming to raise or what for, however, Diatreme has indicated a corporate transaction is also about to be announced.

Under the halt, company shares will be paused until Monday, June 27, or when further details about the raise are released to the market, whichever one comes first.

Diatreme is an emerging Australian producer of mineral sands, with its flagship project Galalar silica project located around 200 kilometres north of Cairns.

For the March quarter, the company burnt $462,000 in operating activities and spent $1.6 million in exploration and evaluation.

At the end of the quarter, the company had $4.8 million in cash and cash equivalents.

Earlier this year, the company discovered a second high-grade silica sand deposit within the northern area of the Si 2 North Project in Queensland.

This deposit contained an estimated 53 million tonnes at 99.32 per cent silicon dioxide and has intersected up to 99.62 per cent silicon dioxide.

On the market, DRX last traded at 4.1 cents per share on June 22.

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