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Investors back Dateline’s $6.25m placement for Colosseum exploration
Mining
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Dateline and the gold and rare earths prospectivity of its Colosseum project in California have attracted firm commitments from investors for a $6.25m placement.
The placement of 62.5 million shares is priced at 10c each, or a 17% discount to the last traded price of the company’s shares.
It also includes the issue of one option exercisable at 13.5c and expiring on or before their third anniversary for every four shares subscribed for.
Dateline Resources (ASX:DTR) plans to use the proceeds to fund further gold and rare earths exploration at Colosseum and for general working capital.
Gold, rare earths potential
The company has enjoyed significant successes with Colosseum, which was recently estimated to host a contained resource of 813,000oz of gold.
Importantly, over 70% of this is contained within the higher confidence Measured and Indicated categories, providing a strong starting point for the previously producing mine.
And it is not just about gold.
As part of its efforts to determine just how prospective the project is for REEs, a gravity survey has revealed multiple rare earth drill targets.
This includes a gravity high, about 1km from the Colosseum open pit, which strikes north-northwest over 2,000m and varies in width between 200m and 450m while having a density range that is similar to the nearby Mountain Pass Rare Earth Mine.
Just 10km away, Mountain Pass is the richest rare earth mine in the world and is the only operating rare earth mine in the US.
This article was developed in collaboration with Dateline Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
