Alkane Resources has set out to raise $107 million to fund the development of two significant resource projects in New South Wales.
Alkane said it was considering various funding alternatives to fund the Tomingley Gold project and the Dubbo Zirconia development, which it estimated it would spend a combined $1 billion developing.
The capital raising comprises a $30 million, one for ten entitlement offer priced at $1.10 per share; a $44 million placement at the same price, and a further $33 million placement, also at $1.10 per share, subject to shareholder approval.
The placements have been arranged by Petra Capital, which has reported firm commitments for the full $77 million.
The Perth-based explorer said the funds would be used for construction and commissioning at Tomingley and the preparation of environmental impact statements and continued development at Dubbo.
At close of trade today, Alkane stocks had dipped 5.6 per cent, to trade at $1.18.