Alkane takes a stake in Calidus

17th October 2018 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH (miningweekly.com) – The board of ASX-listed Alkane Resources has approved a A$3.6-million investment into fellow-listed Calidus Resources.

Alkane will subscribe for 125-million shares in Calidus, priced at 2.95c a share, giving the diversified junior a near 8.8% interest in Calidus at the close of the transaction.

“The Calidus investment represents an exciting opportunity for Alkane shareholders. Working collaboratively alongside the existing Calidus board and management team, Alkane brings additional capital and operating capability that will bolster the Warrawoona gold project as it moves through the critical feasibility phases in 2019,” said Alkane MD Nic Earner.

The Warrawoona gold project, in Western Australia, includes a 712 000 oz resource, at 2.11 g/t gold, with the project holding significant exploration upside.

Calidus MD Dave Reeves said on Wednesday that the strategic placement to Alkane meant that the company was now fully funded through the upcoming prefeasibility study.

“We welcome Alkane to the register, not just as a shareholder but as an operating gold producer with a wealth of knowledge and skills that is now available to Calidus under a technical alliance.

“A prefeasibility study is expected to commence on completion of the resource upgrade that is anticipated to occur when all results are received from the current drill programme that has four to six weeks to run.”