DMC Mining Seeks $6M Capital Raise as Firawa and Labé Acquisitions Progress

Strategic Acquisition in Guinea

DMC Mining Limited is steadily advancing its acquisition of two promising uranium projects in Guinea: the Firawa Uranium-Rare Earth Element-Niobium (REE-Nb) project in the southeast and the Labé Uranium project in the north. Announced initially in June 2024, these acquisitions represent a significant pivot for DMC, positioning the company within a globally strategic resource sector. The Firawa project, noted for its carbonatite-style deposit, holds potential for scale and grade that could elevate DMC’s profile in uranium and critical minerals markets.

However, the completion of these acquisitions remains contingent on regulatory approvals and the granting of exploration licences, which have been delayed due to a temporary pause in Guinea’s cadastral licensing system. The Guinean Ministry of Mines and Geology has recently confirmed the reopening of the licensing authority, with prioritisation on renewals and revocations before new licences are issued. DMC anticipates receiving the necessary exploration licences imminently, a critical step toward satisfying conditions precedent for ASX re-admission.

Capital Raising and Shareholder Engagement

To support the acquisition and operational expenses during its ASX suspension, DMC has scheduled a shareholder meeting for 10 February 2025. The agenda includes seeking approval to increase the maximum capital raising to $6 million, an increase from prior limits, to facilitate repayment of accrued loans and fund ongoing activities. CPS Capital is acting as lead manager for this capital raise, which is integral to the company’s strategy to re-comply with ASX listing rules and secure its official re-admission.

The company’s financial position at the end of December 2024 showed modest cash reserves of just over A$32,000, underscoring the importance of the capital raise and loan facilities. DMC has entered into unsecured and secured loan agreements totaling over A$700,000 with Aries Finance Pty Ltd, providing essential liquidity to cover public offer expenses and operational costs during this transitional period.

Board Restructuring Signals Renewed Focus

In line with its strategic repositioning, DMC has implemented key changes to its board. The resignations of Bruce Franzen and Andrew Dawes have been acknowledged, with Michael Minosora appointed as Non-Executive Chairman and Sebastiano (Sam) Randazzo joining as Non-Executive Director. These appointments reflect a refreshed leadership team poised to guide the company through its next growth phase, particularly as it awaits exploration licence approvals and ASX re-admission.

Operational Pause on Ravensthorpe

While the company’s focus intensifies on its Guinea projects, no exploration work was conducted on the Ravensthorpe Nickel Project in Western Australia during the quarter. This pause aligns with DMC’s strategic prioritisation of the Firawa and Labé acquisitions, which are expected to define the company’s future trajectory.

Looking Ahead

DMC Mining’s December quarter report paints a picture of a company in transition, balancing regulatory hurdles, capital requirements, and leadership changes. The pending exploration licences and shareholder approval for increased capital will be pivotal milestones. Success in these areas could unlock the latent value of the Firawa and Labé projects, positioning DMC as a notable player in the uranium and critical minerals sector amid rising global demand.