Alloy in $5 million float and aim for year end production

Perth-based gold exploration junior Alloy Resources plans to raise $5 million and list on the Austalian Stock Exchange next month to pursue its exploration activities in the state's gold fields.

Alloy lodged a prospectus with the Australian Securities and Investment Commission this week for the issue of 25 million shares at 20 cents.

The offer will open on February 21 and is expected to close on March 22, with a March 29 list date planned.

Alloy main focus is its Comets Webb project south of Meekatharra.

The company also has projects at Horse Well north of Wiluna and Doyles Dam near Kalgoorlie.

Alloy managing director Jayson Meyers said the company's capital raising would be put to use on three main fronts.

"We will pursue exploration to increase resources at Comets Webb and then look to convert resources to reserves. The second phase will be a mining feasibility study on the Comets Webb underground and open cut sites," he told WA Business News.

"The third stage will include geophysical surveys and targeted drilling programmes."

He said the company was looking to commence production before the end of the year.

Alloy plan to spend $2.7 million on exploration and pre-development capital expenditure, and another $1.7 million will be set aside for working capital and operating costs.

The company is committed to a feasibility study at Horse Well, and is awaiting tenements to be granted at Doyles Dam.

It also has a blue sky project, 88 Creek, in the Kimberley region, where resources are yet to be uncovered but surveys and samples have provided good initial indications.