Alcyone Resources has cut the price and size of a planned share placement, in response to tough market conditions and global financial instability.
Alcyone said today its share placement would be launched at 4.8 cents per share and raise a total of $3.5 million, after announcing last week it planned to raise $4 million at 5.3 cents per share.
The Perth-based silver and base metals miner said a number of international institutions and high net worth investors had participated in the placement, including chairman Charles Morgan, who applied for $500,000 worth of shares.
The company also announced today that it had cut maximum of a proposed share purchase plan for existing shareholders, to $3 million, from $4 million.
The purchase plan will also be priced at 4.8 cents per share.
The funds will 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 stocks were down 6.4 per cent at 9:10AM, WST, trading at 4.4 cents.