- Alchemy Resources (ALY) taps investors for $5.5 million to fund drilling across its projects in Western Australia and New South Wales
- New and existing institutional and sophisticated investors have subscribed for shares in a single-tranche placement comprising 220 million shares at 2.5 cents each
- The issue price marks a 24.2 per cent discount to Alchemy’s last closing price on October 6 of 3.3 cents
- The funds will go towards drilling at the company’s WA-based gold and lithium projects, Karonie and Lake Rebecca, and its NSW gold and base metals projects, Overflow and Yellow Mountain
- ALY shares resumed trading today and are down 12.12 per cent to trade at 2.9 cents at 12:42 pm AEDT
Alchemy Resources (ALY) has tapped investors for $5.5 million to fund drilling across its projects in Western Australia and New South Wales.
Emerging from a trading halt this morning, ALY revealed it had received binding commitments for a single tranche placement comprising 220 million shares at 2.5 cents each.
The issue price marks a 24.2 per cent discount to Alchemy’s last closing price on October 6 of 3.3 cents.
New and existing institutional and sophisticated investors put their hands up for the new shares, which the company said endorsed its upcoming exploration programs.
Alchemy is looking to undertake aircore and reverse circulation drilling at its WA-based Karonie lithium and gold projects as part of its first-pass program due to start this month.
First-pass exploration is also scheduled at the Lake Rebecca project in WA targeting lithium and gold.
In NSW, the company has planned reverse circulation and diamond drilling at the Overflow and Yellow Mountain gold and base metals projects to test extensions to the known mineralisation in the areas.
Chairman Lindsay Dudfield said the company was “delighted” with the strong support it received for the capital raise.
“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,” Mr Dudfield said.
“We now have the balance sheet to accelerate our exploration programs across Western Australia and New South Wales, and we look forward to updating shareholders on the results of these programs over the coming months.”
ALY shares resumed trading today and are down 12.12 per cent to trade at 2.9 cents at 12:42 pm AEDT.