Dacian scales back raising as gold price falls

Dacian Gold has again reduced the size of its $50 million placement and put its $100 million entitlement offer on ice, as the gold price fell to a 10-month low overnight.

Perth-based Dacian told the market on Tuesday it would raise $150 million from investors to fund the bulk development cost of its Mt Morgans gold project, which has a capex of $220 million.

But just a day later it had trimmed the raising by $2 million and reduced the original $2.75 price per share to $2.50.

Today, Business News was told that Dacian had put plans to raise $100 million from the entitlement offer component of its original raising on hold, but would receive commitments for up to $30 million from the placement, which was priced at $2.50 per share.

That’s down from the original price of $2.75.

The aspiring gold miner's decision follows news overnight that the gold price hit its lowest since February, to $US1,160.38 an ounce.

Dacian shares were last worth $2.97 each.