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- Alderan Resources’ (AL8) shares plummet on the announcement of a $1.3 million share placement aimed to fund its Detroit copper-gold project in Utah
- The company will issue 133.7 million new shares at a price of one cent each
- For every two shares subscribed for, one attaching option will be received, exercisable at 1.6 cents and expiring in three years
- The proceeds of the placement will be used to execute a reverse circulation drill program at the Detroit project and for working capital
- Shares end the day down 31.3 per cent to close at 1.1 cents
Alderan Resources’ (AL8) shares have plummeted on the announcement of a $1.3 million share placement aimed to fund its Detroit copper-gold project in Utah.
The company will issue 133.7 million new shares at a price of one cent each.
For every two shares subscribed for, one attaching option will be received, exercisable at 1.6 cents and expiring in three years.
The proceeds of the placement will be used to execute a reverse circulation drill program at the Detroit project and for working capital.
In addition, the company will explore new opportunities in the US to strengthen its portfolio.
Managing Director Scott Caithness said exploration at the project over the last year has yielded promising results.
“Following the support of new and existing shareholders who participated in this placement, we are looking forward to continuing our drilling during this quarter with the ultimate aim of progressing towards a maiden resource estimate,” he said.
Shares ended the day down 31.3 per cent to close at 1.1 cents.
