Dreadnought Resources Secures $8.5 million for Accelerated Gold Exploration

Highlights:

• Dreadnought Resources Ltd (ASX: DRE) secures $8.5 million through a two-tranche Placement at $0.012 per share.
• Black Cat Syndicate Limited (ASX: BC8) participates with a $1 million investment, reinforcing confidence in Dreadnought’s gold exploration strategy.
• AU$1.5 million Share Purchase Plan (SPP) is set to follow, pending ASX waiver approval, offering eligible shareholders an opportunity to invest at the same price.

Successful Capital Raising to Boost Gold Exploration

Dreadnought Resources Ltd (ASX: DRE) has successfully secured firm commitments for an $8.5 million placement at an issue price of $0.012 per share. At the time of writing, the company also announced a Share Purchase Plan (SPP) capped at $1.5 million, contingent upon an ASX waiver. Notably, Black Cat Syndicate Limited (ASX: BC8) has committed $1 million to the placement, highlighting strong industry support.

Strategic Funding Allocation

The capital raised will be strategically deployed to advance the Mangaroon Gold Project, focusing on resource and regional drilling, mining approvals, and a gravity gold study. Additionally, drilling activities at the Illaara project will also be prioritized. Dreadnought’s Managing Director, Dean Tuck, emphasized the company’s commitment to rapid gold discovery, stating, "This is a strong environment for gold, and we intend to find as much as possible in the shortest timeframe."

Placement and SPP Details

The placement, divided into two tranches, will issue a total of 708,333,334 new shares. Tranche One will settle on April 3, 2025, while Tranche Two is pending shareholder approval at a general meeting scheduled for May 6, 2025. The SPP, subject to an ASX waiver, will be available at the same price as the placement, offering eligible shareholders an opportunity to participate.

Market Reaction and Future Outlook

The offer price represents a 20% discount to the last closing price and a 20.3% discount to the five-day volume-weighted average trading price. The company aims to use these funds to accelerate exploration and potentially supply ore or concentrate to Black Cat Syndicate’s processing facility at Paulsens.

Petra Capital Leads the Offering

Petra Capital served as the Sole Lead Manager and Bookrunner for the placement, facilitating strong institutional and sophisticated investor participation. With a clear strategic vision and funding in place, Dreadnought Resources is well-positioned to fast-track its gold exploration initiatives.

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