Dakota Minerals Completes Successful $12.3 Million Placement
Dakota Minerals has raised $12.3 million in a heavily oversubscribed placement of 61.6 million ordinary shares at $0.20 per share to institutional and sophisticated investors. The issue price of $0.20 was a 8.1% premium to last close, a 3.5% premium to 5-day VWAP and a 17.4% premium to 10-day VWAP. Proceeds of the Placement will be used to accelerate phases 2 & 3 drilling at the Lynas Find lithium project, with the aim to expand the known mineralisation and rapidly define a resource.
Dakota Minerals Limited (Dakota or the Company) is pleased to announce it has successfully completed a heavily oversubscribed placement of 61.6 million ordinary shares in the Company at an issue price of $0.20 per share to institutional and sophisticated investors, to raise $12.3 million (before costs) (Placement).
Argonaut acted as Lead Manager to the Placement.
The issue price of $0.20 represents the following:
- a 8.1% premium to the last closing price;(1)
- a 3.5% premium to the 5-day VWAP;
- a 17.4% premium to the 10-day VWAP
The Company expects to complete the Placement on or about Monday, 9 May 2016.
The strong support for the Placement follows exceptional grades from first pass drilling of the Lynas Find Lithium Project, including 35m @ 2.1% Li2O and an overall average grade of 1.75% Li2O for intercepts assayed to date. The mineralisation is shallow-dipping, which bodes well for low strip ratios under a mining scenario.
Proceeds of the Placement will be used to accelerate Phases 2 and 3 drilling, with the aim to expand the known mineralisation and rapidly define a resource. The Company may also explore further opportunities in the lithium sector.
Dakota’s Non-Executive Chairman, Mr John Fitzgerald, said: “We are extremely pleased at the investor support we have received from the domestic and international market, including a number of well respected institutions. The Placement was heavily oversubscribed, which is a testament to the excitement surrounding our early drill results and those still to come. These funds will allow us to progress Phases 2 and 3 of our Lynas Find exploration and drilling program, as well as begin other exploration at some highly prospective areas. I’m very thankful for the support our shareholders have shown in Dakota thus far, and I’m greatly looking forward to what’s ahead.”
(1) As at 22 April 2016.