Alkane invests $3.7m in Calidus

Burswood-based Alkane Resources has invested $3.7 million in gold explorer Calidus Resources, with the proceeds to fund completion of a pre-feasiblity study at the Warrawoona project in the Pilbara.

The investment has come in the form of a share placement, with 125 million Calidus shares issued to Alkane at 2.95 cents each, representing a 13.5 per cent premium on the last closing price.

The gold explorer has also issued 70 million free attaching options, exercisable at 3.5 cents each for one year.

Discovery Capital Partners act as corporate adviser to Calidus.

The investment will give Alkane a 8.8 per cent stake in the company.

Calidus managing director Dave Reeves said the placement means the company is fully-funded through the upcoming PFS.

“We welcome Alkane on to the register, not just as a shareholder but as an operating gold producer with a wealth of knowledge and skills that is now available to Calidus under a technical alliance,” he said.

“A pre-feasibility study is expected to commence on completion of the resource upgrade that is anticipated to occur when all results are received from the current drill programme that has 4 to 6 weeks to run."

Alkane operates the Tomingley gold mine in New South Wales, which last year produced 78,533 ounces.

Shares in Calidus finished up 11.54 per cent at 2.9 cents each today.