PERTH (miningweekly.com) – Junior explorer Alchemy Resources will raise A$5.5-million to fund drilling work at its tenements in Western Australia and New South Wales.
The ASX-listed company on Tuesday said it had received support for the placement of 220-million shares, at a price of 2.5c each, from sophisticated and institutional investment.
The issue price represented a 24.2% discount to Alchemy’s last closing price on October 6, and a 12.3% discount to the company’s five-day volume weighted average share price. The shares will be placed in a single tranche on October 17, under Alchemy’s existing placement capacity.
“Alchemy is delighted with the strong support for the capital raising and is pleased to welcome a number of new sophisticated and institutional shareholders to the company,” said chairperson Lindsay Dudfield.
“The success of the raising is an endorsement of both the prospectivity of Alchemy’s lithium, gold and base metal assets and the quality of our exploration team led by CEO James Wilson. We now have the balance sheet to accelerate our exploration programmes across Western Australia and New South Wales and we look forward to updating shareholders on the results of these programmes over the coming months.”