Australia's Diatreme Resources falls on discounted placement

Diatreme Resources

27/06/2022 04:13

** Shares of Diatreme Resources Ltd  DRX.AX  drop as much as
29.3% to A$0.029, their sharpest intraday pct loss since March
2020
    ** The silica sands explorer says it placed 559.5 mln shares
at an issue price of A$0.025 apiece to European material
solutions company SCR-Sibelco N.V.  urn:newsml:reuters.com:*:nASX2pXbCr
    ** Also agreed to a placement to top shareholder Ilwella Pty
of 132.1 mln shares at the same issue price
    ** Total capital raise of A$17.27 mln ($11.95 mln)
    ** Combined issue price is at a 39% discount to the stock's
last close
    ** Additionally, Sibelco to invest A$35 mln to develop
Diatreme's Galalar Silica Project & Northern Resource Project
through a joint venture
    ** About 15.9 mln shares change hands, compared with the
30-day average volume of 5 mln shares
    ** Stock touches its lowest level since June 17
    ** Stock up 95.2% this year, as of last close

    ($1 = 1.4449 Australian dollars)
    

 (Reporting by Savyata Mishra in Bengaluru)
 ((Savyata.mishra@thomsonreuters.com))