- Gold and base metal explorer Alchemy Resources (ALY) has entered a trading halt ahead of a capital raising
- Alchemy spent the last quarter focusing on its projects in WA and New South Wales
- Importantly, it formed the new Lake Rebecca Project, which comprises 12 exploration licences that cover 482 square kilometres
- Alchemy plans to compile historic results and commence negotiations with Traditional Landowners for future exploration
- The company is increasing its 51 per cent interest in the Lachlan/Cobar Basin projects to an 80 per cent interest by spending a further $300,000 by May 2021
- Part of the project includes the Overflow mine which Alchemy plans to conduct a diamond drilling program at in the December quarter
- Company shares last traded for 1.9 cents on Thursday, August 6
Alchemy Resources (ALY) has entered a trading halt ahead of a capital raising announcement.
The company will remain in a trading halt until the commencement of normal trading on Tuesday, August 11, unless the announcement is made earlier.
Alchemy Resources is an Australian exploration company focused on various gold, base metal and nickel-cobalt resources.
Importantly, the company formed the new, wholly-owned Lake Rebecca Project which is located near its existing Karonie Project in Western Australia.
The new project was formed following 12 prospective exploration licence applications which cover 482 square kilometres to the southeast of Saracen Mineral Holdings’ 5.4 million-ounce Carosue Dam gold deposit.
Alchemy plans to compile historic results and commence negotiations with Traditional Landowners for future exploration once the tenements are granted.
The company is also earning up to an 80 per cent interest in the Lachlan/Cobar Basin projects which consists of the Overflow, Yellow Mountain, West Lynn and Eurow projects.
The projects are part of a farm-in and joint venture with Heron Resources. So far, Alchemy has earned 51 per cent. To increase this to 80 per cent, it needs to spend a total of $2 million by May 30, 2021. The company has spent roughly $1.7 million.
During the June quarter, Alchemy didn’t complete exploration at the Overflow gold-base metal project but plans to commence diamond drilling in the December quarter. Drilling is also planned at the Yellow Mountain mine, subject to approvals.
At the end of the quarter, Alchemy has $900,000 in cash. It is unclear what the capital raise funds will go towards, but is likely to support further project developments and exploration.
Company shares last traded for 1.9 cents each on Thursday, August 6.