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Diatreme raises funds for Galalar

6th November 2019

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – ASX-listed junior Diatreme Resources will raise A$3.6-million through a share placement to progress its Galalar silica project.

The company on Wednesday said that it would place approximately 363-million shares, at a price of 1c each to new a new cornerstone investor Ilwella and new and existing sophisticated investors.

The new shares will be issued under Diatreme’s existing placement capacity, while shareholders would need to vote on the proposed attaching of one free unlisted option for every two shares issued. The options will be exercisable at 2c each with an expiry date of two years from issue.

The funds raised will be used to advance Galalar closer to approval and development, including drilling and bulk testing, the advancement of permitting, project economic studies and project financing.

Galalar is currently estimated to host some 30.2-million tonnes of resource, of which 21.5-million tonnes has been classified as indicated.

Edited by Creamer Media Reporter

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