PERTH (miningweekly.com) – Gold developer Alicanto Minerals will raise A$6-million through a share placement to fund the next round of drilling at its Greater Falun copper/gold project, in Sweden.
The company on Friday announced that more than 46.1-million shares will be placed at an issue price of 13c each to sophisticated and professional investors, under the company’s existing placement capacity.
The issue price represents a 10.3% discount to Alicanto’s last closing price.
Proceeds from the raising will be used to fund a 20 000 m follow-up drilling programme at the Greater Falun project, and will fund working capital.
The drilling programme will start early next year.
“The strong demand for the placement reflects the growing recognition of the huge potential of Greater Falun, the strength of the initial drilling results and its location in a tier-1 jurisdiction,” said Alicanto MD Peter George.
“Given what we have seen in the drilling, as well as the highly promising targets not yet tested, we want to keep building on the great work undertaken so far. The proceeds of this raising will allow us to prepare that programme and begin drilling early in the new year.”