RE: Institutional Placing - 100% premium to last one18 Jun 2026 09:41
DH has not disclosed anything relating to the CSE, so it is reasonable to speculate that concerns may have centred on the company’s cash position, particularly given a typical expectation of circa 18 months’ funding (noting that the precise definition of this can vary).
It is likely that the CSE assessed the balance sheet as at the prior year-end and concluded that, six months on, a significant portion of that cash would already have been deployed.
The Obonga option requires approximately 8,000m of drilling. 2000 was drilled in prior years & under the original plan (Plan A), the current 2,000m was to be funded from existing cash, with flow-through financing intended to support a further 4,000m. However, given delays from the CSE and a drilling window of roughly two months, the opportunity to align both CSE approval and flow-through funding became extremely constrained.
In this context, Plan B, a London-based raise is not the preferred route, but it is a pragmatic solution that enables the Obonga drilling programme to proceed. ( I have no inside knowledge & this is speculation)