Alkane to raise $16m

Perth-based Alkane Resources has announced plans to raise up to $16 million from investors to progress its Dubbo zirconia project in New South Wales.

Alkane plans to raise the funds via a one-for-five non-renounceable entitlement offer priced at 20 cents per share, which will be made available to existing shareholders.

The raising is not underwritten, however Ian J Gandel, a non-executive director and Alkane’s largest shareholder with a 22.1 per cent stake, has committed to subscribe for his pro-rata entitlement.

“In addition, all directors of the company who are shareholders intend to participate in the offer to the full extent of their entitlement,” Alkane said in a statement.

Petra Capital will lead manage the raising.

The proceeds of the raising will be used to fund ongoing work at the company’s Dubbo project, which lies in close proximity to the company’s Tomingley gold operations.

Alkane plans to buy additional parcels of land within the Dubbo project area, as well as perform pilot plant runs to produce samples for potential offtake partners.

The Dubbo project hosts zirconium, hafnium, riobium and rare earths.

Alkane shares were 5.5 per cent lower to 20.5 cents each at 1pm.