- Dreadnought Resources (DRE) is raising up to $21.4 million to accelerate exploration work at its Mangaroon project in Western Australia
- The company will raise $20 million through an institutional placement comprising 200 million shares at 10 cents each
- Subject to shareholder approval, directors have committed to subscribing for a further $1.4 million worth of shares to boost funds
- Dreadnought is eager to utilise the fresh funds for exploration at Mangaroon, as well as at its Tarraji-Yampi, Central Yilgarn and Bresnahan projects
- DRE shares are trading at 11 cents at 12:29 pm AEDT
Dreadnought Resources (DRE) is set to raise up to $21.4 million to accelerate exploration activities at its Mangaroon project in Western Australia.
The company on Wednesday emerged from a trading halt as it revealed its plans to raise $20 million through a share placement, which will see the company issue sophisticated and institutional investors 200 million shares at 10 cents each.
DRE called the halt earlier this week when it announced plans to raise capital after its latest quarterly results revealed less than one quarter left of available funding based on December quarter spending levels.
The placement issue price represents a 9.1 per cent discount to DRE’s last trading price but a 2.1 per cent premium to its five-day volume-weighted average price on January 27.
In addition, company directors have committed to subscribe for $1.4 million of new shares at the same price as the placement. This will require shareholder approval at a general meeting expected to be held next month.
The company also said it had received applications for the exercise of four million options, which would inject a further $90,000 into the business. The issue of shares, upon exercise of the options, is expected to occur in line with the placement.
Dreadnought Managing Director Dean Tuck expressed his appreciation to shareholders for the support and said he looked forward to unlocking more potential of the company’s WA assets.
“The range and scale of minerals we have identified have seen Mangaroon emerge as a world-class critical metals province in about six months,” Mr Tuck said.
“These funds will allow for further rapid progress on rare earths and a range of other critical metals at Mangaroon.”
Dreadnought expects the placement will settle on Tuesday, February 7.
DRE shares were last trading at 11 cents at 12:29 pm AEDT.