DMC Mining Raises $6M, Awaits Guinea Exploration Licences to End ASX Suspension

Strategic Acquisition in Guinea

DMC Mining continues to advance its acquisition of two significant 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 projects represent a major shift in the company’s focus and scale, with Firawa noted for its carbonatite-style deposit that holds potential as a globally significant resource based on historic grades and scale.

Despite the promise, the acquisition remains incomplete as DMC awaits the grant of critical exploration licences, a prerequisite for both the capital raising and the company’s readmission to the ASX official list. The licences have been delayed due to a temporary closure and review of Guinea’s cadastral system, though ongoing dialogue with the Guinean Ministry of Mines and Geology suggests the licences will be granted shortly.

Regulatory and Market Implications

The company’s shares remain suspended on the ASX pending completion of the acquisition and licence approvals. This suspension underscores the regulatory complexities involved in cross-border resource acquisitions, especially in jurisdictions undergoing administrative reforms. DMC has proactively lodged a re-compliance prospectus and supplementary documents to satisfy ASX listing rules following the change in its nature and scale of activities.

Shareholders have shown strong support for the company’s strategic pivot, with overwhelming approval for resolutions to change the company’s activities and to increase the capital raising limit from $5.5 million to $6 million. The public offer closing date has been extended to 8 May 2025, with indications that further extensions may be necessary given the licence delays.

Financial Position and Funding

Financially, DMC Mining is navigating a challenging period. Cash on hand at the end of the quarter was a modest $73,000, reflecting the company’s focus on the Guinea projects and the suspension of operations at its Ravensthorpe Nickel project in Western Australia. To bolster liquidity, DMC has secured and subsequently increased a loan facility with Aries Finance Pty Ltd, now capped at $800,000, with $600,000 drawn down as of March 2025.

This loan facility provides critical short-term funding but also highlights the company’s reliance on external financing while awaiting licence approvals and capital raise completion. No exploration or development work was conducted on the Ravensthorpe project during the quarter, emphasizing the company’s strategic shift towards its Guinea assets.

Looking Ahead

DMC Mining’s next steps hinge on the timely grant of exploration licences and successful completion of its capital raising. The company’s management remains optimistic about the licences being issued shortly, which would unlock the path to ASX readmission and enable the commencement of exploration activities on these promising uranium and rare earth element projects.

Investors will be watching closely for updates on licence status, capital raise progress, and any operational developments as DMC transitions from a suspended entity to an active explorer with a potentially transformative asset base in Guinea.