WA-focused explorer Dundas Minerals Ltd (ASX:DUN) has embarked on a capital raising aiming for $1.5 million to fund additional work on its Windanya and Baden-Powell gold plays north of Kalgoorlie, as well as evaluation of development opportunities and other corporate costs.
The capital raise of up to $1,497,065 will be broken into two components: firstly, a pro-rata entitlement offer based on two new shares for every seven shares held on May 15 at 5pm (AWST); these will be offered at $0.022 cents per share, with a goal of raising $497,065.
For this offer – which will close on May 29 – Dundas has emphasised that it is open to all eligible shareholders with a registered address in Australia, New Zealand, Singapore, Hong Kong and Canada (British Columbia) who hold shares on the May 15.
Secondly, Dundas will issue $1 million worth of unsecured and unlisted convertible notes to a group of professional and sophisticated investors; this issue will be subject to approval by company shareholders.
Windanya – which holds an inferred resource of 25,000 ounces of gold – has been subject to recent exploration work, with a second drilling program ended on May 6. Follow up reverse circulation drilling has now commenced, and is due for completion halfway through this month.
High grades intercepted at the Capricorn prospect there include 3 metres at 9.14 grams per tonne from 114m; and 3 metres at 5.3 grams per tonne from 28 metres. Drilling at the Aquarius prospect have yielded intercepts such as 3 metres at 10.2 grams per tonne from 109 metres; and 2 metres at 6.5 grams per tonne from 70 metres.
Dundas Minerals has been trading at 2.5c.