IPO Watch: DMC’s Firawa project in Guinea underpins its return to ASX trading

DMC Mining is planning a return to active trading on the back of a $5m capital raising to progress its Firawa uranium-niobium-REE project in Guinea.

DMC Mining's Firawa project is prospective for uranium, niobium and REE. Pic: Getty Images

• DMC Mining raising $5m through a public offering to drive return to ASX trading

• Focus on the Firawa uranium-niobium-REE project in Guinea, which already has a uranium resource

• Previous drilling has also returned strong rare earths and niobium intersections

Long term suspensions from trading on the ASX are more often than not the death knell for companies – or at least for their tenure on the Australian stock exchange.

However, DMC Mining (ASX:DMM) has mapped out a clear pathway to getting its shares back into active trading that revolves around a public offer to raise $5m – with potential to expand this by $500,000 – and its newly acquired Firawa uranium-niobium-REE project in Guinea.

The company reached binding agreements to acquire the advanced Firawa project – and the Labé uranium project – in June this year.

Firawa in southeast Guinea is a carbonatite style deposit that already hosts a resource of 27.1Mt grading 295 parts per million U3O8 for 17.6Mlb of contained uranium, while the presence of rare earths and niobium have been confirmed by historical drilling.

Notable REE intersections include 45m at 32,990ppm TREO from a down-hole depth of 7m in hole FRW 121, which also returned a 14m intersection at 471ppm U3O8 from 7m, and 100m at 11,608ppm TREO from 8.6m along with 58m at 775ppm U3O8 from 43m in FRW 151.

Analysis of five high-grade samples resulted in an average neodymium-praseodymium to REE ratio of 28%.

Firawa also contains anomalous concentrations of niobium throughout the 3km mineralised zone with rock chip sampling returning a top result of 22,784ppm niobium while drilling struck 5m at 5859ppm niobium from 48m and 48m at 1698ppm niobium from 50m.

Labé is an early stage project in northern Guinea that is along strike from Haranga Resources’ (ASX:HAR)Saraya uranium deposit.

Ears on the ground

So just how did DMM become aware of an advanced project like Firawa?

Speaking to Stockhead, executive chairman David Sumich said the company first approached the project because of its strategic focus on critical metals and exploration opportunities in mining-friendly jurisdictions.

“The project stood out due to its existing JORC 2012 mineral resource estimate of 27.1 Mt at 295 ppm U₃O₈, revealing significant commercial-grade uranium, niobium, and rare earth elements,” he said.

“Additionally, Firawa’s extensive historical drilling data provided proof of its potential to be a globally significant asset.

“The project’s location in Guinea, known for its supportive mining environment and established infrastructure, further solidified its appeal as a key, long-term asset for DMC.”

Sumich added Guinea is highly attractive for investment due to its status as a globally significant exporter of key minerals, including bauxite and iron ore.

“The country has a robust regulatory framework, supportive government, and a proven track record in resource development, minimising political and operational risks,” he said.

“Additionally, its mining-friendly environment and established infrastructure offer favourable conditions for project permitting and community relations, making it an ideal destination for mining companies like DMC.”

The Firawa and Labé projects in Guinea. Pic: DMC Mining

Commodity outlook

Firawa being prospective for uranium, niobium and REEs is also a big plus given their outlook remains strongly positive.

“Uranium demand is rising due to global investments in nuclear energy for a low-carbon future,” Sumich said.

“Rare earth elements are crucial in high-tech industries, including electric vehicles and renewable energy technologies, driving their demand and niobium is essential for steel manufacturing and advanced technologies.

“With global decarbonisation efforts and technological advancements, these commodities are projected to stay in high demand for the foreseeable future.”

Next steps

Sumich also touched on the next steps for DMC, telling Stockhead it would advance Firawa through a structured work program, which includes 5000m of diamond drilling to explore mineralisation extensions and conducting metallurgical testing.

“The goal is to establish a multi-commodity JORC 2012-compliant resource, focusing on uranium, REEs, and niobium,” he said.

“Additionally, DMC will continue engaging with local stakeholders and optimising project infrastructure.

“Key milestones include completing the exploration program, resource estimation updates, and progressing toward a development decision.”

DMM’s public offer of 100 million shares, priced at 5c to raise $5m, will close on September 23, 2024.

It may accept oversubscriptions for a further 10 million shares to raise another $500,000.

Proceeds will be used primarily for expenditure on the Firawa project, expenses relating to the acquisition, other exploration activities, working capital and repaying a loan.

Should the raising procure the required funds, shares in DMM will resume trading on the ASX on September 30.

At Stockhead, we tell it like it is. While DMC Mining is a Stockhead advertiser, it did not sponsor this article.

Originally published as IPO Watch: DMC’s Firawa project in Guinea underpins its return to ASX trading