New Dimension Resources (NDR.V) needed almost three months to close a private placement after originally announcing a no-warrant offering at C$0.055 per share in December. The appetite for the financing wasn’t there and by the end of January, NDR had to add half a warrant as a sweetener. Every full warrant could be converted into an additional share of New Dimension at C$0.125 in the first 18 months, followed by an increased strike price of C$0.25 for the subsequent 18 months.
This sweetener didn’t impress the market at all. Not only did it take an additional 2.5 months to close the funding, New Dimension was only able to raise C$736,000 of the C$1.2M it originally anticipated (and 40% of the financing was taken up by Sandstorm Gold (SAND, SSL.TO) and CEO Eric Roth, indicating just C$436,000 was raised on the market).
Taking three months to close and raising just 60% of the eyed amount isn’t exactly a sign of strength, and New Dimension will very likely have to raise more money soon to further follow up on its newly discovered high grade vein structures at Los Cisnes.
During its most recent exploration program, New Dimension has discovered three new high-grade gold-silver epithermal vein zones at the Sierra Blanca (where NDR predecessor Mariana Resources had already identified in excess of 22 kilometers of cumulative vein strike length) and Los Cisnes targets in Argentina’s Santa Cruz province. After encountering high-grade chip samples from the three new vein structures, New Dimension has initiated a trenching program to get a better understanding of the geological structures of the projects.