PERTH (miningweekly.com) – Junior explorer Alara Resources will undertake a renounceable rights issue to raise up to A$2.48-million to extend the Joint Ore Reserves Committee-compliant resource at its Washihi/Daris projects, in Oman.
Under the rights issue, shareholders would be able to subscribe for one new fully paid share for every share held, at an issue price of 1c each. Each share would come with one free attaching option, which could be exercised at a price of 2c on or before the end of April 2017.
Alara pointed out that the rights issue offer price represented a discount of 50% to the one-month volume weighted average price of Alara’s shares.
Funds raised would be used to extend the resources at the Washihi/Daris projects, where Alara recently launched a feasibility study. It was hoped that by extending the resource, Alara could further strengthen the economics of these projects.
The feasibility study was expected to be completed by year-end.