- Alchemy Resources (ALY) receives binding commitments to undertake a $1.85 million placement
- More than 168 million fully paid ordinary shares will now be issued to sophisticated and institutional investors at 1.1 cents
- Upon completion of the placement, Alchemy will undertake a non-renounceable entitlement offer to raise up to $1.23 million
- Alchemy will use the money from both the placement and entitlement offer to fund drilling programs at the Karonie, Lake Rebecca, Overflow and Yellow Mountain projects.
- Alchemy has ended the day in the grey with shares at 1.3 cents
Alchemy Resources (ALY) has received binding commitments to undertake a $1.85 million placement.
The company entered a trading halt on October 7 but did not disclose how much it intended to raise or how it would use the funds.
A total of 168,060,862 fully paid ordinary shares will now be issued to sophisticated and institutional investors at 1.1 cents.
This price represents a 15.4 per cent discount to Alchemy’s last close of 1.39 cents on October 6 and a 19.7 per cent discount to the five-day volume-weighted average price of 1.37 cents.
CEO James Wilson intends to participate in the placement for roughly $60,000.
Further, Non-Executive Chairman Lindsay Dudfield and Non-Executive Director Liza Carpene intend to take up their eligible entitlements.
Upon completion of the placement, Alchemy will undertake a non-renounceable entitlement offer to raise up to $1.23 million.
Participants under the entitlement offer will receive one new share for every six fully paid shares held as of October 18.
Alchemy will use the money from both the placement and entitlement offer to fund drilling programs at the Karonie, Lake Rebecca, Overflow and Yellow Mountain projects.
Chairman Lindsay Dudfield commented on the placement.
“The success of the raising is an endorsement of both the prospectivity of Alchemy’s gold and base metal assets and the quality of our exploration team led by CEO James Wilson,” Mr Dudfield said.
“We now have the balance sheet to accelerate our exploration programs across Western Australia and New South Wales and look forward to updating shareholders on the results of these programs over the coming months.”
Alchemy has ended the day in the grey with shares trading at 1.3 cents.