Moonlight IPO Priced at $0.20: Diatreme Shareholders Offered $3M Priority Offer

Diatreme Divests Clermont Project Subsidiaries

In a strategic move to sharpen its focus on silica sands development, Diatreme Resources Ltd (ASX – DRX) has entered into a Share Sale Agreement with Moonlight Resources Limited to sell its entire interest in two subsidiaries that own the Clermont Project. The deal, announced on 29 October 2025, transfers ownership of Chalcophile Resources Pty Ltd and PGE Minerals Pty Limited to Moonlight.

Under the terms, Diatreme will receive 16.25 million Moonlight shares valued at approximately A$3.25 million based on the IPO price, alongside a cash payment of A$250,000. This transaction marks a clear pivot for Diatreme, allowing it to concentrate resources on its core silica sands portfolio, which is advancing through final permitting stages.

Priority Offer Sweetens Shareholder Value

Importantly for Diatreme shareholders, Moonlight is extending a fully underwritten priority offer of up to A$3.0 million worth of shares at an issue price of $0.20 per share. To sweeten the deal, shareholders who participate will receive one free attaching option for every two shares acquired, exercisable at $0.30 with a three-year expiry. This structure not only incentivizes participation but also provides potential upside if Moonlight’s shares appreciate post-listing.

Moonlight has lodged its IPO prospectus with ASIC and is targeting an ASX listing before the end of 2025. The offer opens on 4 November and closes on 14 November, with trading expected to commence by 28 November. This timeline sets a fast pace for investors to evaluate the opportunity.

Strategic Implications and Market Outlook

Neil McIntyre, Diatreme’s CEO, emphasized that the Clermont asset was non-core and that the transaction enables a transfer to a team with strong exploration and development credentials. Retaining Moonlight shares provides Diatreme shareholders with exposure to future value creation without the operational burden.

The revised agreement differs from a prior arrangement announced in August 2025, notably by excluding performance rights and certain conditions precedent, while adding specific warranties and tax indemnities. These changes suggest a more streamlined and risk-mitigated transaction for both parties.

For investors, the deal offers a dual benefit – immediate value realization through cash and shares, and a priority stake in a new ASX-listed entity focused on the Clermont Project. However, the ultimate success hinges on Moonlight’s IPO reception and subsequent operational execution.