Dacian scales back raising as gold price falls
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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.