Dacian raises A$110m for Mt Morgans development

PERTH (miningweekly.com) – Gold developer Dacian Gold has launched a A$110-million equity raise, comprising a A$15.4-million institutional placement and a 1-for-3.1 accelerated nonrenounceable entitlement offer to complete the construction of its Mt Morgans project, in Western Australia.

Dacian on Wednesday told shareholders that some eight-million new shares will be placed to raise A$15.4-million, with some 47-million new shares to be issued under the accelerated nonrenounceable entitlement offer, to raise a further A$94.4-million.

Shares will be priced at A$2 each, representing an 11.9% discount to the last closing price of Dacian shares on February 21.

“The equity raising completes the last piece of the funding package required to complete the construction of the Mt Morgans gold project through to first gold production,” said executive chairperson Rohan Williams.

“We can now focus all our attention on continuing project construction and mine development at Westralia and Jupiter, keeping us on track to achieve first gold production in the first quarter of 2018.”

Dacian in December 2016 secured a A$150-million syndicated funding facility to partly fund the construction costs of the Mt Morgans project.

The A$220-million project is expected to deliver 186 000 oz of gold over the first four years of an eight-year mine life, based on a 2.5-million-tonne-a-year carbon-in-leach operation.

A prefeasibility study into the expanded Westralia mine area has the potential to increase the mine life to nine years, with production in the first seven years expected to average 197 000 oz of gold.

Williams said on Wednesday that the funds raised will also enable continued exploration targeting more discoveries at Dacian’s landholding at Mt Morgans, where significant potential remained to grow the current gold inventory.