WA explorers raise $11m

Local companies Alderan Resources and Canyon Resources have secured funds to progress their copper and bauxite projects.

Yesterday, Alderan announced it would use the proceeds from a $5 million share placement to complete a diamond drilling program at the company’s Detroit copper project in the US, expected to begin in September.

Alderan, led by managing director Scott Caithness, said recent exploration at Detroit had shown high-priority copper and gold targets.

The Subiaco-based business will issue 125 million shares under the placement in two tranches.

The offer is priced at 4 cents per share and is almost a 15 per cent discount to Alderan’s last closing price of 4.7 cents.

Alderan’s directors intend to subscribe for an additional $105,000 worth of shares each, subject to shareholder approval (to be sought at a meeting in September).

Canaccord Genuity is acting as lead manager to the raise.

Meanwhile, Perth-based Canyon Resources says it has received commitments to raise $6.2 million from a share placement to advance its Minim-Martap bauxite project in Cameroon.

Managing director Phillip Gallagher said the placement would allow Canyon to complete a feasibility study for the project and progress important agreements, including offtake discussions.

“This is an exciting time for Canyon as we transition from a predominantly exploration driven company to a project builder taking one of the world’s most substantial bauxite projects towards development,” he said.

Canyon will issue roughly 77.3 million shares under the placement at a price of 8 cents each. It represents a 14 per cent discount to the company’s last closing price of 9.3 cents.

Non-executive director Peter Su – who became a strategic shareholder in Canyon last year when he invested $5.6 million into the business – intends to subscribe for a further 65.7 million shares (subject to shareholder approval).

Ashanti Capital and Foster Stockbroking are acting as joint lead managers to the raise.

Shares in Canyon closed up 3.5 per cent today trade at 8.9 cents.

Alderan’s share price remains unchanged, at 5.2 cents.