Oct 09, 2020

Diatreme cashed up for ‘transformational’ year

Diatreme cashed up for ‘transformational’ year

Diatreme Resources has carried out a $4.64 million capital raising to help advance its Galalar silica sand project in Far North Queensland through permitting and approvals.

Chairman Greg Starr said the company was now well funded as it headed into a ‘transformational’ 12 months.

The company announced it had completed a bookbuild to raise the $4.64 million, including cornerstone shareholder Ilwella subscribing for $1.65 million.

It will also undertake a share purchase plan to raise about $500,000.

“We continue to advance the Galalar project at a rapid pace in this world-class silica province and we look forward to delivering on our vision in the near term to become a producer of high-quality premium-grade silica and mineral sands for use in growing global solar PV and ceramics markets,” Mr Starr said.

“Diatreme is now very well funded following this placement and our share register is strengthened positioning the company exceptionally well as we move into the next 12 months for the company, which will be a transformational period.”

Diatreme Resources has its sights set on a 2022 start to production at the Cape York project, which lies near the world’s largest operating silica sand mine at Cape Flattery.

It announced in May a 25 per cent increase in the Galalar silica sand resource to 47.5 million tonnes, including a maiden Measured Mineral Resource of 30.9 million tonnes at 99.28 per cent SiO2.

This followed the release of an independent economic study showing the project’s potential to generate more than 110 full‐time jobs and inject some $24 million in the construction phase and up to $42 million in the operational phase for the benefit of the Hope Vale, Cooktown and surrounding region.