Dart Mining (ASX: DTM) will bank around A$1.25 million following a capital raising to fund deep drilling to test for Henderson (U.S.) style deep high grade Molybdenum repetitions at the Unicorn Project in northeast Victoria.
Importantly, on completion of the share placement, the company will have $3.3 million cash at bank to fund the next stages of exploration and development of the project.
Dart will issue about 15 million shares at $0.083 per share to existing and new shareholders.
The share placement was supported by lead manager Bell Potter Securities.
Lindsay Ward, managing director, commented: "We are gratified with the support shown by investors despite challenging market conditions.
"It will also provide further funding for an accelerated pre-feasibility metallurgical and geotechnical drilling. Significantly, this funding allows our project to be further advanced."
The capital raising will be completed in two tranches, the first immediately and the second tranche of $500,000 due in mid-December.
Similarities to world class mine
Dart has discovered a new mineralised porphyry province in northeast Victoria, which hosts Molybdenum, copper, silver, zinc, tin and gold mineralisation in porphyry igneous intrusions.
The Unicorn project, which is Dart's principal project, is a Molybdenum-copper-silver Climax style porphyry that has similar geological characteristics to the world class Henderson primary Molybdenum porphyry mine in Colorado, U.S.
Unicorn has a number of unique characteristics with its high grade zones from surface and the deposit outcrops.
Currently the Measured, Indicated and Inferred Resource is 203 million tonnes at 0.06% Molybdenum equivalent, at 0.04% Molybdenum equivalent cut off, with the potential for delineating additional resources.
This bolsters Dart's cash position to $3.3 million to fund the next stages of exploration and development of the project.
The company has a clear focus and pathway to progress Unicorn to production having recently completed a Scoping Study, which indicated the potential for the project to become a viable, long mine life operation.
Importantly, demand for Molybdenum is forecast to remain strong and continue to grow at between 4% and 6% per year with prices to recover to US$18.50 per pound by 2016 when Unicorn is planned to move into full production.
Unicorn's low forecast operating cash cost is a significant advantage with the project being cash flow positive at a US$8 per pound, Molybdenum price, (net of credits).
The low cash cost of US$3.58/lb (net of credits) places the project in the lowest cost quartile.
Dart has a market cap. of around A$16.5 million and, with cash in hand of $3.3 million on completion of the share placement, has an enterprise value of $13.2 million. On an EV/Resource Unicorn is valued at just $0.065.
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