64 Million Shares Issued at $0.0065, $834K Next in Desert Metals’ Placement
Desert Metals Limited has completed the first tranche of its capital raising, issuing 64 million shares to raise $416,000, with a shareholder meeting planned to approve a second tranche worth $834,000.
- 64 million shares issued at $0.0065 each raising $416,000
- Shares issued under existing placement capacity (Listing Rule 7.1)
- Shareholder meeting scheduled for January 2026 to approve second tranche
- Second tranche aims to raise $834,000 via 128 million shares
- Funds to support gold exploration projects in Côte d’Ivoire
Capital Raising Progress
Desert Metals Limited (ASX, DM1), a gold exploration company focused on West Africa, has successfully completed the first tranche of its recent placement, issuing 64 million new shares at a price of $0.0065 each. This tranche raised approximately $416,000 before costs and was executed under the company’s existing placement capacity, allowing a swift capital injection without the need for immediate shareholder approval.
Looking Ahead to Tranche Two
The company has announced plans to convene a shareholder meeting in January 2026 to seek approval for the second tranche of the placement. This next phase proposes issuing 128,307,692 shares to raise $834,000, effectively doubling the funds raised in the first tranche. Notably, the announcement lists the share price for tranche two as $0.065, which appears inconsistent with tranche one’s pricing and may require clarification. The outcome of this meeting will be pivotal in determining Desert Metals’ near-term funding capacity.
Strategic Use of Funds
The proceeds from these placements are earmarked to support Desert Metals’ ongoing exploration and development activities in Côte d’Ivoire. The company holds significant interests in the Tengrela South and Adzope gold projects, both situated in prolific gold regions near established mines such as the Sissingué gold mine. These projects represent promising opportunities for resource expansion and potential future production, making the capital raise critical for advancing exploration efforts.
Regulatory Compliance and Shareholder Relations
Desert Metals has complied with all relevant provisions of the Corporations Act in issuing the shares without a formal disclosure document, relying on existing exemptions. The company expressed gratitude to existing shareholders for their ongoing support and welcomed new investors joining through the placement. Maintaining transparent communication and regulatory compliance remains a priority as Desert Metals navigates this funding phase.
Market Implications
This capital raising reflects Desert Metals’ proactive approach to securing funds necessary for exploration in a competitive sector. While the dilution effect of new shares is a consideration for current shareholders, the infusion of capital is essential to sustain momentum in advancing the company’s projects. Investors will be watching closely for the shareholder meeting outcome and any updates on exploration progress that could enhance the company’s valuation.
Bottom Line?
Desert Metals’ next shareholder vote will be a key milestone in shaping its funding trajectory and exploration ambitions.
Questions in the middle?
- Will the shareholder meeting approve the second tranche at the proposed terms?
- Is the $0.065 share price for tranche two a typographical error or a deliberate pricing adjustment?
- How will the additional capital impact the timeline and scale of exploration activities in Côte d’Ivoire?
