Dacian Gold has unveiled new plans to raise funds for development of the Mt Morgans gold project in the Goldfields region of Western Australia.
Perth-based Dacian is seeking to raise $110 million, including $15.4 million through the placement of eight million shares at $2 each, and a further $94.4 million through a non-renounceable entitlement offer at the same price.
The price is 50 cents lower than an abandoned $100 million raising launched by the company late last year.
Dacian commenced construction at Mt Morgans earlier this year after securing a $150 finance facility with three banks.
Capital costs to build the project are $220 million, which includes $172 million of infrastructure and $48 million of mine establishment costs for the underground Westralia mine area and the Jupiter open pit. Production is expected to commence during first quarter 2018.
Dacian Gold chairman Rohan Williams said the raising completed the last piece of the funding package required to complete the construction of the Mt Morgans gold project through to first gold production.
“We can now focus all out attention on continuing project construction and mine development at Westralia and Jupiter, keeping us on track to achieve first gold production in first quarter of the 2018 calendar year,” Williams said.
“It will also fund continued exploration targeting more discoveries on our extensive and highly prospective land-holding at Mt Morgans, where we see significant potential to continue to grow our gold inventory.”