Ditem raises funds to turn drills

News of Ditem Explorations‘ (DIT-V) fresh funds for drilling at its three properties sent the Montreal-based uranium exploration junior up on Monday.

The offering which closed on Jan. 26 — gives Ditem gross proceeds of $2.75 million.

In Toronto on Jan. 29, the company’s shares were up nearly 17% or 13 to 91 on roughly 1.8 million shares traded surpassing its 52-week high of 83. The company has roughly 34 million shares outstanding.

Ditem issued 4.2 million units at a price of 65 each with each unit made up of one common share and one-half of one common share purchase warrant. A full warrant is exercisable at a price of 75 for 24 months from date of closing.

The company says proceeds will be used for exploration at its Beartooth Island project, Cree Lake property and Otish Mountain property.

Beartooth is situated in the northwestern edge of the Athabasca basin. Ditem can earn a 50% interest in the property from Golden Valley Mines (GZZ-V) by spending $1 million on exploration in the first three years, and an additional 16% by spending another $2 million in the fourth year and by bringing the project up to feasibility. It plans to start drilling on the property early in 2007.

Cree Lake, also in the Athabasca but on the southeast side, was wholly acquired by Ditem early in 2006.

The company needs to spend $1 million annually to maintain ownership of property.

The Otish Uranium property is located on the western edge of the Otish basin in central Quebec, bordering Cameco’s Otish block.

Ditem holds roughly 320 sq. km of land in the Otish Mountains making it one of the largest plays in the area. With the new financing it plans to conduct magnetic surveys, more geophysical work and drilling if warranted.