Alcaston in $1.7m rights issue to fund Fiji drilling projram

West Perth-based gold explorer Alcaston Mining NL has announced a pro-rata renounceable rights issue to existing shareholders to raise around $1.7 million for a drilling program at its Fiji gold project.

The 21 million new shares, to be distributed on a basis of two new shares for every five held at the record date of November 9, will be issued at a price of 8 cents each.

Funds raised from the issue will fund the Fijian Sabeto drilling programme, as well as ongoing evaluation of other targets and working capital.

The company made a rights issue to existing shareholders in May this year, raising $2.1 million to fund drilling at the Webe Creek project in Vanuatu and conduct an airborne aeromagnetic survey of the Sabeto project in Fiji.

This issue, like the one in May, is fully underwritten by Patersons Securities Ltd.

It will open on November 15 and close on November 29.