Dacian Gold (DCN)

Analyst: Macquarie

Recommendation: Outperform

Price target: A$3.60 (previously $3.70)

Thursday's close: $3.01

Reason: Royalty buy-out and exploration ramp-up

Comments: DCN has launched a $45m capital-raising to fund a royalty buy-out and ramp-up of exploration. DCN has launched an institutional placement and share purchase plan (SPP) that could raise $45m. The $37m institutional placement at $2.70/share is a 10.3% discount to the last closing price. The placement has the option to be upsized to $40m through over-subscriptions. An SPP at the same price is expected to raise a further $5m. DCN plans to use $25m of the proceeds to accelerate drilling at Mt Morgans. A 60km, $12m drilling program will test f...