The raising prices new shares at $2.75 and comprises a $50 million institutional placement and a $100 million non-renounceable rights issue.

Analysts contacted by MNN were very surprised by the quantum of the raising.

However one suggested a very strong Dacian share price of recent times may have encouraged the company’s board to use equity.

Dacian shares hit a high of $3.94 in September, having started the year at less than 80c.

Still, others like Deutsche recently modelled a $150 million raising, and at a lesser share price ($2.50) than the $2.75 announced by Dacian.

MNN was unable to reach Dacian managing director Rohan Williams.

Dacian expects to finalise debt for the development before the end of the year.

Mt Morgans will produce an average of 186,000 ounces per annum in its first four years of production, with all-in-sustaining-costs put at $A1039 per oz.

Dacian’s tapping of the equity market follows Independence Group raising about $280 million earlier this year to take the place of debt already in place to develop its Nova nickel-copper project.