Mining venture capitalist shares jump on $10m investment deal
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DGR Global shares jumped 17 per cent in early trade today after the mining venture capitalist joined forces with a boutique hedge fund in a $10 million deal to develop more mining companies.
DGR Global, which develops explorers from grassroots stage to production, holds investments in a raft of listed entities including AIM and TSX-listed SolGold and IronRidge Resources as well as Armour Energy, Aus Tin Mining and Dark Horse Resources.
DGR chief Nick Mather said the deal with Sydney-based Tribeca Investment Partners was an endorsement of its resource company creation strategy.
The funding provides Brisbane-based DGR (ASX:DGR) with working capital to further advance its projects.
“The spectacular growth already achieved in AIM and TSX listed SolGold Plc and AIM listed Iron Ridge Resources Ltd is the tip of the iceberg for DGR, and we have every confidence in the trajectory for Armour Energy, Dark Horse Resources, Aus Tin Mining, and Lakes Oil,” Mr Mather said.
“We are focused on resource commodities that the world needs as it urbanises and electrifies, and that’s copper – lots of it, lithium, gas and gold.
“Copper is the new iron ore, gas is the most efficient cleanest and transportable fossil fuel you can get, and lithium demand for battery storage is forecast to skyrocket.”
DGR Global will appoint Tribeca Natural Resources Fund Manager Ben Cleary to its board.
Tribeca will provide an initial $8 million in convertible notes, maturing in two years’ time at 20c per note and convertible at 20c per DGR share.
Tribeca is also entitled to subscribe for a further $2 million worth of notes in any further convertible note fundraising.
DGR has a market cap of about $65 million and positions in listed companies of about $175 million in market value.
Shares in DGR gained 17 per cent in morning trade to 12.5c with more than 500,000 shares changing hands by 11:30am AEST.