Alkane to raise $1.4m through rights issue.

Perth-based gold and base metals miner and explorer Alkane Exploration Ltd aims to raise $1.4 million through a non-renounceable rights issue to fund feasibility studies and process optimisation work in various tenements.

The company will issue approximately 9.5 million new fully paid ordinary shares at 15c each on the basis of 1 new share for every 20 shares held as at 6 October 2006.

The deal is underwritten by Gandel Metals Ltd, after its subsidiary Abbotsleigh Ltd acquired around 13 per cent of the company in July this year.

There is no minimum subscription, but oversubscriptions will not be accepted.

Sydney-based Rothsay chartered accountants are acting as auditors to the deal.

The offer for receipt of acceptances will open on October 12, and close on November 2.