Dome Gold Mines Targets $7M via Convertible Notes at $0.15 Share Conversion
Dome Gold Mines Ltd is launching a $7 million convertible note offering aimed at funding key developments in its Fiji mining projects, including the Sigatoka feasibility study and exploration programs.
- Convertible notes raise up to AUD 7 million, primarily AUD 5 million with oversubscription option
- Notes unsecured, convertible at $0.15 per share, 3-year tenor, 10% annual interest
- Funds to complete Sigatoka feasibility study and mining lease application
- Airborne geophysical surveys planned for copper, gold, and silver targets at Nadrau
- Working capital to support Sydney and Fiji operations
Funding the Next Phase
Dome Gold Mines Ltd (ASX, DME) has announced a convertible note offering designed to raise up to AUD 7 million, with an initial target of AUD 5 million and a provision for oversubscriptions. This capital injection is intended to accelerate the company’s development efforts in Fiji, where Dome holds several promising mineral exploration tenements.
The offering is exclusively available to sophisticated investors and involves unsecured notes convertible into ordinary shares at a fixed price of $0.15 each. The notes carry a 10% annual interest rate, payable semi-annually, and mature after three years, at which point any unconverted notes must be repurchased by the company.
Strategic Allocation of Funds
The proceeds will primarily support the completion of the Sigatoka Feasibility Study, a critical step toward advancing the heavy mineral sand project that contains abundant magnetite. Dome is also preparing to submit a mining lease application for Sigatoka, signaling its intent to move closer to production.
Additionally, Dome plans to undertake an airborne geophysical survey over its Nadrau project, targeting copper, gold, and silver deposits. This survey aims to leverage recent advances in geophysical methods to identify and rank mineralised targets efficiently, potentially unlocking new drilling opportunities.
Working capital will also be allocated to maintain the company’s operational bases in Sydney and Fiji, ensuring administrative and field activities continue smoothly during this pivotal phase.
Market Context and Company Outlook
Chairman Jack McCarthy highlighted the timing of the offering as critical, citing strong and sustained price increases in copper, gold, and silver markets. These favorable conditions provide a compelling backdrop for Dome’s exploration and development activities, particularly at the Nadrau and Ono Island projects.
Since listing on the ASX in 2013, Dome has steadily built a portfolio of mineral assets in Fiji, with a focus on gold, copper, and industrial sands. The current funding round underscores the company’s commitment to advancing its projects toward production and capitalizing on the region’s mineral potential.
Investors will be watching closely to see how Dome balances the dilution risk inherent in convertible notes with the potential value creation from successful project development and exploration outcomes.
Bottom Line?
Dome’s convertible note offering sets the stage for a decisive push in Fiji, but execution and market response will be key to watch.
Questions in the middle?
- When will the convertible notes be issued and what is the timeline for closing the offering?
- How will the potential dilution from note conversion impact Dome’s share price and capital structure?
- What are the expected timelines and milestones for the Sigatoka feasibility study and mining lease approval?
