- Dreadnought Resources (DRE) receives firm commitments for a $12 million institutional placement
- The company is issuing 200 million shares to sophisticated and institutional investors at 6 cents each and directors have also committed to subscribe for $350,000 worth of shares
- The funds will mainly go towards drilling at the Mangaroon rare earth project in WA to unlock the potential of the Yin discovery
- In addition to this and having a maiden JORC resource planned for next quarter, Dreadnought has other activities in the works across its project portfolio
- Company shares have ended Tuesday’s session trading steady at 6.8 cents
Dreadnought Resources (DRE) came out of a trading halt yesterday to announce the details of its capital raise.
The materials stock launched a $12 million institutional placement which will issue 200 million new shares to institutional and sophisticated investors at 6 cents each.
The issue price represents a 7.7 per cent discount to the last traded price on July 28, a 1.4 per cent discount to the five-day volume-weighted average price (VWAP) and a 0.8 per cent premium to the 10-day VWAP.
The placement was strongly supported by investors as well as company directors who, subject to shareholder approval, will subscribe for $350,000 worth of shares at the same price as the placement.
Dreadnought plans to use the money for exploration activities at its Mangaroon rare earth project in Western Australia.
Specific works will include infill, extensional and discovery drilling with a focus on unlocking the potential of the Yin discovery with a maiden JORC resource due in the December quarter.
Managing Director, Dean Tuck said progressing the Yin discovery requires an acceleration of activities.
“As does testing of the potential game changing prospects around Yin which includes the
possible source of the regional rare earths being the five carbonatites (C1 to C5). An initial JORC resource at Yin will provide confirmation as to the scale and grade potential at Yin,” he said.
In addition to the Mangaroon project, Dreadnought has planned activities at its other projects including receiving assays from the Central Yilgarn and Tarraji-Yampi projects, announcing an initial JORC resource for Metzke’s Find within Central Yilgarn, and drilling at Tarraji-Yampi.
The $12 million placement is expected to settle on Thursday, August 4.
Dreadnought shares ended Tuesday’s session trading steady at 6.8 cents.