16/06/2014 - 10:37

Alkane raises $10.4m

16/06/2014 - 10:37

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Gold producer Alkane Resources has raised $10.4 million through a placement of 40 million shares to institutional and sophisticated investors.

Gold producer Alkane Resources has raised $10.4 million through a placement of 40 million shares to institutional and sophisticated investors.

The placement shares were sold for 26 cents per share, representing a 4 per cent discount to the last sale price prior to the company’s trading halt last Thursday.

The placement was handled by joint lead managers Credit Suisse and Petra Capital.

The investors included funds managed by Fidelity Worldwide Investment, which has become a substantial shareholder in Alkane.

The new shares issued under the placement will rank equally with existing Alkane shares.

The funds raised from the placement will supplement existing cash reserves which are intended to be used for the progression of Alkane’s Dubbo Zirconia project, as well as the development and acquisition of land and water resources for the DZP. 

Alkane’s share price rose by 3.7 per cent to 28 cents at 10:30am WST.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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