Alkane Resources launches Aus$54.8m gold rush

Australian miner’s capital raise will include $20m institutional placement

Australian mining and exploration concern Alkane Resources is raising capital of up to AUS$54.8m (US$37m £28.7M) at $0.55 per share to fund exploration and development at its East Lachlan gold assets in New South Wales.

The exercise includes an institutional placement to raise $20m, for which binding commitments have been received. Alkane will also undertake a non-underwritten 1 for 8 pro-rata non-renounceable rights issue to raise up to a further $34.8m.

Alkane expects approval in January 2020 to develop an underground exploration decline that would drive underground from the Wyoming One mine to its Roswell and San Antonio prospects.

Most of the new shares to be issued are scheduled to settle on December 4, with substantial holder Abbotsleigh agreeing to subscribe for approximately $4.73m.

The company also wants to buy more land within the Tomingley corridor to support the underground decline.

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Alkane managing director Nic Earner said: “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.”

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