Alycone Resources has announced an $8 million capital raising plan to accelerate development at its Texas silver and polymetallic project.
The Perth-based miner announced today it had completed a $4 million share placement priced at 5.3 cents per share to new and existing investors.
It said the funds would be used to bring construction of a leach pad at the Texas project’s Twin Hills operations, connecting to grid power to decrease operating costs, and to expand its exploration program.
Alcyone said it was also planning to launch a $4 million share offer, on similar terms to the placement.
Managing director Andrew King said he was very pleased with the response from investors.
“We look forward to a period of steadily increasing production, falling operating costs and active news flow from exploration during the second half – laying the foundations for Alcyone’s next phase of growth as a leading Australian silver producer,” Mr King said.
At 1:45PM, WST, Alcyone stocks had fallen 10 per cent, trading at 5.4 cents.
