Great Dirt Resources (ASX:GR8) Up 130% on a $1.45m Cornerstoned Raise

Placement Locked In, Sentiment Explodes

Great Dirt Resources saw a significant re-rating today, up 130%, after locking in binding agreements to raise $1.446 million via a share placement.

The company is issuing 9.3 million shares at $0.155 to raise roughly $1.4 million. Management said demand was strong, with new investors coming in, including Australian high net worth individuals and family office investors.

In terms of what the money is for, the use of funds is pretty broad. They have stated it will be used to fund existing projects and support working capital needs.

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Doherty, Basin, Girraween, The Manganese Footprint Is Growing

The Doherty Deposit is one of Great Dirt Resources’ key manganese assets, located around 100 km north of Tamworth.

It also has proven historical production, including very high reported shipment grades. The company cites historical reporting of battery grade material up to 74.3% Mn and metallurgical grade material around 46% Mn.

On the more recent work, Great Dirt reports “massive manganese mineralisation”, with samples up to 50.3% Mn. It also completed a maiden drilling program at the Junior Prospect, drilling 19 holes for 1,701 m, and mapping mineralisation along roughly 2,000 m of strike.

The Basin Deposit is another asset where early work linked manganese occurrences and magnetic features to the discovery of massive manganese mineralisation. Reported samples here ran up to 54.5% Mn.

At Girraween, rock chip sampling returned 45.1% to 52.4% Mn across five samples, which is a strong indication of grade potential at surface.

The Funding Catalyst Behind Today’s 130% Surge

Two experienced resource executives, Steve Parsons and Michael Naylor, have been appointed as consultants, and they also “cornerstoned” the placement.

In plain terms, cornerstoned means they personally invested money into the raise on the same terms as other investors.

Each committed to subscribe for 2,240,000 shares, so that is 4,480,000 shares combined.

On top of that, the company is proposing to issue performance rights to them, subject to shareholder approval. These only vest if the share price VWAP hits $0.35+ for 20 consecutive trading days, and they expire after 3 years.