Alkane receives commitments for $20 million Placement and launches 1 for 8 Rights Issue to fund accelerated exploration and development. - Alkane Resources Ltd
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Alkane receives commitments for $20 million Placement and launches 1 for 8 Rights Issue to fund accelerated exploration and development.

Alkane Resources has launched a capital raising of up to $54.8 million at $0.55 per share to fund an accelerated exploration and development program in the Tomingley Corridor (NSW) in 2020.

The capital raising includes an institutional Placement to raise $20 million, for which binding commitments have now been received. Alkane will also undertake a non-underwritten 1 for 8 pro-rata non-renounceable Rights Issue to raise up to a further $34.8 million.

The majority of New Shares to be issued pursuant to the Placement are scheduled to settle on Wednesday, 4 December 2019.

Alkane Managing Director, Nic Earner said: “We welcome our new shareholders to the Alkane register, who join at a very exciting time for the Company. The accelerated development timetable for the Tomingley Corridor positions Alkane to return to full mill utilisation at Tomingley as quickly as possible to deliver increasing cash flow. With the continued strength of gold prices, in Australian dollar terms, and processing infrastructure already in place, ongoing operating cash flow generated at Tomingley will be excellent support for the balance of the business.

“The continued exploration at Boda, where step-out drilling is underway, has considerable potential to create value for Alkane shareholders. Alkane’s 2020 programme aims not only to assess Boda and surrounding mineralisation, but also to test other Boda-style targets across our licences. This equity raising ensures Alkane continues its history of balance sheet strength as it heads into a very active 2020, putting the Company in a strong strategic position.”

The ASX announcement can be found here. Please let us know if you would like to talk to Alkane Managing Director, Nic Earner.