Dacian raising up to $45M

NEW producer Dacian Gold is seeking to raise up to A$45 million to accelerate exploration at Mt Morgans and extinguish a life-of-mine royalty obligation.

Dacian raising up to $45M Dacian raising up to $45M Dacian raising up to $45M Dacian raising up to $45M Dacian raising up to $45M

Drilling at Mt Morgans

The company will conduct an institutional placement to raise around $37 million, with the ability to take oversubscriptions up to an additional $3 million.

Argonaut Securities, Canaccord Genuity and RBC Capital Markets are acting as joint lead managers.

Shareholders will also be given the opportunity to participate via a share purchase plan to raise up to $5 million.

The issue price for the offers is $2.70 per share, a 10.3% discount to yesterday's close.

Following completion of the institutional placement, Dacian will have around $92 million cash.

The company will use $12 million to extinguish a royalty covering the Jupiter pit.

At least $25 million - and as much as $33 million, depending on the amount raised - will be used for explora...