Western Australia-based Dragon Mining Ltd. is moving to delist from the ASX and shift to the Hong Kong Stock Exchange following a A$17.5 million fully underwritten capital raising.
Dragon Mining said March 31 that it was delisting because at least 53% of its shares are controlled by three shareholders not located in Australia, and a further 16.36% of investors in the company are not Australian residents.
The company also does not have any operations in Australia, with its gold projects located in Finland and Sweden.
Dragon said there has been little interest from Australian investors in its foreign assets, which makes it difficult to raise further capital.
The company now plans to offer 50.0 million shares at 35 Australian cents apiece to list on the Hong Kong Stock Exchange and fund the development of its Faboliden gold project in Sweden.
Dragon expects to release its prospectus by June 30, with the offer set to close on July 5 and the company to start trading on the Hong Kong Stock Exchange on July 14.