Dacian starts building Mt Morgans mine

Aspiring miner Dacian Gold has started construction of its Mt Morgans project near Laverton, after finalising regulatory approvals and locking in a $150 million funding deal over the Christmas break.

Perth-based Dacian said today it was set to begin earthworks for a 416-person accommodation village, and had almost wrapped up negotiations for the purchase of a second-hand village from a site south of Perth.

It will also undertake earthworks to support the area around the Westralia mine, including offices, a workshop and a temporary power station, and is making preparations for the installation of pumping infrastructure for dewatering the mine.

“Pit dewatering from the Westralia open pit will commence once the company receives the WA Department of Environment Regulation works approval/licence which is currently being processed,” Dacian said in a statement.

“The company also confirms that all proposed mining operations and infrastructure locations relating to the construction, commissioning and gold production of Mt Morgans is underpinned by granted mining leases and granted miscellaneous licences.”

Dacian chairman Rohan Williams said the company was on track to begin gold production in the March quarter of 2018.

In December, Dacian raised $48 million from investors to fund development of Mt Morgan, and had also planned to raise a further $100 million by way of an entitlement offer, but that was quickly cancelled.

Instead, Dacian entered into an agreement with Westpac, BNP Paribas and ANZ Banking Group for a $150 million facility shortly before Christmas, with the company now well funded to develop the $220 million mine.

Dacian shares were 3.8 per cent lower to $2.27 each at 11am.