PERTH (miningweekly.com) – ASX-listed junior Dreadnought Resources will raise A$21.4-million to fund work at its rare earth projects, particularly the Mangaroon critical minerals project in Western Australia.
The company on Wednesday said it had received firm commitments from institutional and sophisticated investors for the placement of 200-million new ordinary shares, at a price of 10c each, to raise A$20-million.
The placement price represents a discount of 9.1% to Dreadnought’s last trading price, and a 2.1% discount to the company’s five-day volume weighted average share price prior to January 27.
In addition to the share placement, directors of the company have also committed to subscribe for A$1.4-million of new shares, also at an issue price of 10c each, subject to shareholder approval at an extraordinary general meeting which is expected in March.
The company has also received application for the exercise of four-million options, which could inject a further A$90 000 in funding. The issue of shares upon the exercise of the options is expected to occur in line with the settlement of the placement.
Proceeds from the placement will be used to advance the company’s portfolio of projects, with the primary focus being the delivery of rare earth discoveries and resource upgrades at Mangaroon.
“The range and scale of minerals we have identified has seen Mangaroon emerge as a world-class critical metals province in about six months. We have already identified a source of the regional rare earths at the C3 carbonatite with potentially more to come. These funds will allow for further rapid progress on rare earths and a range of other critical metals at Mangaroon,” said Dreadnaught MD Dean Tuck.
“The company will also progress activities at its other projects, which are showing considerable promise as ongoing exploration continues. All this amounts to continuous news flow and an exciting period ahead for Dreadnought.
“Dreadnought would like to thank shareholders, new and existing, for the continued support and we look forward to delivering on our strategy to uncover the potential of our exciting portfolio of assets.”