Dundas raises over $1.5m to fund maiden drill run at lucrative Matilda South target early 2023

Dundas Minerals (ASX:DUN) has wound up a capital raising exercise that sees it in receipt of commitments for $1.6m in funding to plug away at its Matilda South and Central project prospects in WA’s south. 

Shares have commenced trading again after being put into a trading halt late last week.

Both prospects overlie the Albany-Fraser Orogen, a region of WA prospective for widespread gold, nickel and copper mineralisation. Last Tuesday, Dundas picked up more acreage in the area. 

Central has returned evidence that gold, nickel, and copper mineralisation could all be present on-site, giving Dundas the potential to develop in WA something of a second goldfields in the south. 

How much did it raise? 

All in all. Dundas has raised: 

• $1.6m in cash 

• Through offering 4m new shares at 40cps 

• Which is a 15% discount to its last traded price on Friday 

“A variety of professional and sophisticated investors” responded to the placement, Dundas notes. 

Funds raised allow exploration at Central to continue into 2023, assuming all permits are in order, including a maiden drilling campaign. 

Also on the company’s radar:

• Matilda South drill run (Q1 2023) 

• Central drill run (2023, no quarter given) 

• Geophys testing at both prospects 

Capital raising, WA government both helping 

“At Matilda South, drilling costs will be co-funded by the Western Australian Government to a maximum of $180,000 under Round 25 of its Exploration Incentive Scheme (EIS),” Dundas MD Shane Volk said. 

“Drilling and reporting must be completed by 31 May 2023. EIS co-funding of $220,000 (Round 26) has also been awarded for drilling at Central…Securing these additional funds places the Company in a sound cash position to undertake an initial drilling program at Matilda South and continue testing early prospectivity at Central.” 

“The 12 month drilling window for Round 26 commences on 1 December 2022. Dundas Minerals is aiming to complete the first of two EIS co-funded drill holes at Central during December 2022.”

Dundas's three month charts. Today's news has sent the price down -8% heading towards lunchtime trades, not too far away

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