Alkane closes rights offer undersubscribed

Perth-based gold and base metals miner and explorer Alkane Exploration Ltd has closed its non-renounceable rights offer undersubscribed, having raised $1.1 million of the $1.4 it aimed for.

The share issue, of 1 new share for every 20 held, was underwritten by Gandel Metals Ltd, which will spend around $264,000 placing the shortfall in accordance with the agreement.

The full text of a company announcement is pasted below

The Board of Alkane Exploration Ltd wishes to advise that the non-renounceable rights offer pursuant to the prospectus dated 27 September 2006 closed on 2 November 2006 with a total of 7,781,976 shares accepted by shareholders.

Undersubscriptions total 1,762,066 shares. This shortfall will be placed in accordance with the underwriting agreement. The offer is fully underwritten by Gandel Metals Pty Ltd as trustee for the Gandel Metals Trust.

Confirmation of allotment and despatch will be advised to ASX in due course in accordance with the Listing Rules.