Alchemy closes at discount on debut

West Perth-based gold company Alchemy Resources Ltd has made a disappointing debut on the Australian Securities Exchange, closing at 23 cents, 2 cents below its offer price.

The company raised $6 million from the issue of 24 million shares, raising funds for the acquisition and exploration of gold tenements in Archaean greenstone belts within the Meekatharra District of the Murchison Mineral Field, Western Australia.

The tenements lie within six separate project areas situated between Cue, Big Bell and Meekatharra in a gold district that has produced over 8 million ounces of gold.

Alchemy offered a priority offer to shareholders of Jindalee Resources Ltd, setting aside a pool of 10 million shares. Jindalee acquired the tenements earlier this year.

The company is chaired by Warwick Davies, who is joined on the board by Michael Hanningon, Mark Hill, Robert Downey and John Arbuckle, who also serves as company secretary.

Sydney-based Novus Capital Ltd acted as sponsoring broker to the offer, while PKF Chartered Accountants served as auditor and investigating accountant. Wright Legal served as independent solicitor to the company