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- Dateline Resources (DTR) launches a $2.71 million placement to fund gold and rare earths exploration at its Colosseum project in California
- The company plans to issue 135.5 million shares at two cents per share to raise the funds ā a discount of around 45 per cent to DTR’s last closing price of 3.6 cents.
- Dateline will also launch a one-for-12 rights offer at the same price as the placement to tap investors for an extra $1 million
- Further, certain company directors plan to convert up to $900,000 in existing debt owing to the same directors into new shares at the same price as the placement
- Shares in Dateline Resources are down 25 per cent to 2.7 cents at 10:20 am AEDT
Dateline Resources (DTR) has launched a $2.71 million placement to fund gold and rare earths exploration at its Colosseum project in California.
The company will issue 135.5 million shares at two cents per share to raise the funds ā a discount of around 45 per cent to DTR’s last closing price of 3.6 cents.
Up to 81.6 million new shares will be issued under the company’s available capacity. The remaining 53.8 million new shares will be issued to investors following shareholder approval. The issuance of these new shares is expected to happen by March 7.
On top of the shares to be issued under the placement, Dateline will grant approximately 67.7 unquoted options over unissued new shares, each with an exercise price of three cents and expiring after three years.
According to the company, it will use the proceeds raised from the placement to advance its Colosseum gold and rare earth project and for general working capital.
Dateline Resources said it also received commitments from certain directors to convert up to $900,000 in existing debt owing to the same directors. The debt will be converted into new shares for the same price as the share issue.
Moreover, the company agreed to give its shareholders a rights issue to raise roughly $1 million at two cents per share on a one-for-12 basis. Reportedly, Peak Asset Management will assume any shortfall up to the same amount from the proposed rights issue.
As a result, one option will be granted for every two shortfall shares issued to Peak.
Shares in Dateline Resources were down 25 per cent to 2.7 cents at 10:20 am AEDT.
