Dakota raises $12.3m

Local explorer Dakota Minerals has tapped investors for a $12.3 million capital raising to fund development of its Lynas Find lithium project in the Pilbara.

The funds were raised through the placement of 61.6 million shares at 20 cents each to institutional and sophisticated investors, representing a 3.5 per cent discount to Dakota’s five-day volume-weighted average price.

The proceeds of the raising will be used to fund drilling work at Lynas Find.

“The placement was heavily oversubscribed, which is a testament to the excitement surrounding our early drill results and those still to come,” Dakota chairman John Fitzgerald said in a statement.

“These funds will allow us to progress phases two and three of our Lynas Find exploration and drilling program, as well as begin other exploration at some highly prospective areas.”

Argonaut acted as lead manager to the placement.

Dakota shares were 24.3 per cent higher to 23 cents each at 9:45am.