Alcyone secures $25m credit facility

South Perth-based Alcyone Resources is on the hunt for new investment opportunities after securing a $25 million credit facility with New York investment management firm Platinum Partners.

Under the terms of the deal between the two companies, Alcyone will also acquire Platinum Partners' Red Arrow gold and silver prospect in Colorado.

The acquisition will be funded by a $1 million equity issue to Platinum Partners and a $4 million convertible loan note.

Alcyone chairman Paul D'Sylva said the funding would allow the company to aggressively pursue new precious metals projects to add to its existing Texas silver project in south-east Queensland.

"With a new $25 million credit facility in place, we are now in a position to step up the process of reviewing a number of investment opportunities in partnership with Platinum Partners that will expand and diversify the business beyond a single mine and enhance its revenues and earnings," Mr D'Sylva said.

"The lack of liquidity in the junior resources sector has created a number of high value opportunities for businesses with access to capital.

"Platinum Partners’ investment into Alcyone of their capital and private assets positions the company in a very strong position to exploit these market opportunities.”

Mr D'Sylva said the company was well-positioned to step up production at the Texas project to nameplate capacity of 1.1 million tonnes per annum, having completed a crusher upgrade at the mine earlier this month.