Diatreme Resources: Partners with Sibelco, raises $52m for silica projects

Diatreme Resources Partners with Sibelco, raises $52m for silica projects

• Diatreme Resources (DRX) forms a strategic partnership with a subsidiary of SCR-Sibelco to develop its silica sands projects in Far North Queensland
• The partnership will raise up to $52 million via a placement of new shares and a two-tranche asset joint venture with Sibelco and the company’s largest shareholder, Ilwella
• Following completion of the placements to Silbelco and Ilwella, their respective undiluted shareholdings in Diatreme will be 15 per cent and 19.99 per cent
• The company will use the money to fund any potential stamp duty and transaction tax costs connected with the transfer of Diatreme’s tenements to establish the joint venture structure, among other activities
• Shares in Diatreme are down 19.5 per cent, trading at 3.3 cents as of 1:32 pm AEST