Permit Delays Push DMC Mining’s ASX Re-listing and Capital Raise Back

Background and Context

DMC Mining Limited (ASX: DMM) has released its Third Supplementary Prospectus dated 12 May 2025, providing a critical update on the progress of its Public Offer and the status of its proposed acquisitions. The company’s original prospectus, issued in August 2024 and supplemented twice since, outlined a capital raising tied closely to the granting of exploration permits over its Guinean Projects. However, these permits remain outstanding, creating a bottleneck for the company’s planned expansion and ASX re-listing.

Extended Deadlines and Conditions

In response to these delays, DMC Mining has extended the deadlines for satisfying key conditions precedent. The Quotation Condition, which requires the shares to be admitted to official ASX quotation, has been pushed back to 12 August 2025. Similarly, the Minimum Subscription Condition, the minimum amount of capital the company must raise under the Public Offer, has been extended to 12 September 2025. These extensions reflect the company’s realistic appraisal of the regulatory and operational hurdles it faces.

Financial Arrangements and Loan Facility

Alongside these timeline adjustments, DMC Mining has formalised an increase in its loan facility with Aries Finance Pty Ltd, a related party entity. The loan facility has been raised to $800,000, with $600,000 already drawn down to support working capital and corporate expenses. The repayment deadline for this facility has also been extended in principle to 11 August 2025, aligning with the revised timetable for the Public Offer and acquisitions. This financial flexibility is crucial as the company navigates the uncertainties surrounding permit approvals and capital raising.

Investor Rights and Offer Timetable

Investors who have already applied for shares under the original Prospectus are granted the right to withdraw their applications and receive a full refund without interest, provided they notify the company by 12 June 2025. The Public Offer’s Closing Date has been extended to 5:00pm (WST) on 4 August 2025, with the company aiming to complete the proposed acquisitions and issue shares shortly thereafter. The expected date for re-quotation on the ASX is now 11 August 2025, subject to the satisfaction of all conditions.

Use of Funds and Risk Considerations

The updated prospectus revises the allocation of funds raised, with a significant portion earmarked for exploration activities at the Ravensthorpe Nickel Project, Firawa Project, and Labé Project. Expenses related to the acquisitions and Public Offer, loan repayments, and working capital needs are also detailed. The company has updated its risk disclosures to reflect the extended loan repayment terms and the ongoing uncertainty regarding permit grants, underscoring the inherent risks in its current phase of development.

Looking Ahead

DMC Mining’s Third Supplementary Prospectus signals a pragmatic approach to managing delays and regulatory complexities. While the extensions provide breathing room, the company’s ability to secure exploration permits and meet subscription targets remains pivotal. Investors and market watchers will be closely monitoring these developments as the company seeks to advance its strategic objectives and re-establish its presence on the ASX.