Dacian Gold plans to raise $37 million to accelerate its exploration programs at the Westralia and Cameron Well projects at Mt Morgans in Western Australia.
The company has designed an accelerated exploration program that will bring asset value forward by extending Westralia to potentially increase mine life and production rates, while also potentially unlocking Cameron Well as a third mining hub at the Mt Morgans operation.
Dacian will issue approximately 13.7 million shares at $2.70/share through an institutional placement to raise the $37 million, with the ability to take oversubscriptions to raise an additional $3 million.
It will use $25 million of the funds raised to aggressive explore Mt Morgans, including $12 million on near-mine targets at Westralia, $10 million on new-mine targets at Cameron Well, and $3 million on new syenite-hosted targets.
Dacian will use the remaining $12 million to extinguish a royalty obligation at the Jupiter mine, eliminating a life-of-mine cost from open pit production.
Rohan Williams, Dacian chairman and chief executive, said the company had substantially improved the exploration optionality at Mt Morgans.
“Our intent with this equity raising is to fast-track the value-realisation of this enhanced exploration optionality by bringing forward discovery of new mineral resources and potentially new mines and higher production levels,” Williams said.
Dacian produced 34,155oz of gold at Mt Morgans in the June quarter.