Dacian to raise $25m for gold project

Local explorer Dacian Gold has kicked off a $25 million capital raising to fund ongoing work at its Mt Morgans project near Laverton, where it hopes to start construction in 2017.

The raising will comprise a placement of 14.4 million shares at 69 cents each to raise $9.9 million, and a five-for-22 non-renounceable entitlement offer at the same issue price to raise up to $15.07 million.

The funds raised will be used to complete a definitive feasibility study on the Mt Morgans gold project, which the company plans to bring into production by 2018.

Dacian will also use the funds to continue an exploration drilling program at the project.

Chairman Rohan Williams reiterated his comments in September when the company released a scoping study on Mt Morgans, saying the project would be “an outstanding WA gold project at every level”.

“This transaction will see the feasibility study fully funded. The study is scheduled for completion by late next year and with the benefit of extensive infrastructure already in place we continue to target the commencement of construction in 2017 and first production in 2018,” Mr Williams said.

The scoping study estimated the project would cost $157 million to develop.

CBA Equities solely underwrote the raising, and acted as joint lead manager with Argonaut.

Treadstone Partners acted as strategic and financial adviser to Dacian.

Dacian shares were unchanged at 72 cents each at 11:20am.