www.alkane.com.au
Alkane Resources (ASX: ALK) is a multi commodity mining and exploration company focused on the Central West of New South Wales, Australia. Alkane's shares are also listed as American Depository Receipts (ADR's). The company has built a gold resource inventory of over 1 million ounces at McPhillamys near Orange in a venture with Newmont Australia.
The Company has an advanced feasibility study in progress for the development of the Dubbo Zirconia Project which is based upon a very large in-ground resource of the metals zirconium, hafnium, niobium, tantalum, yttrium and rare earth elements.
Alkane Resources raises A$21m for completion of Dubbo Zirconia Project DFS
Alkane Resources (ASX: ALK) has raised A$21 million through a placement of 20 million shares at $1.05 per share for the completion of the definitive feasibility study (DFS) on the Dubbo Zirconia Project (DZP).
As well as the DFS, the funds raised will be used for ongoing marketing development at the project located in New South Wales and working capital.
Proceeds will also be used for a number of other projects including the preliminary development costs of the Tomingley Gold Project and further resource evaluations.
Evaluation will continue at the company’s other existing gold and copper exploration projects.
The placement was substantially oversubscribed.
The issue price of $1.05 represents a 9.9% discount to the closing price on the last day of trading on the ASX.
The DZP is one of the most advanced zirconium and rare earth deposits outside of China, with a production due to start during 2014.
In December Alkane completed the DFS for its Tomingley Gold Project in the central west of New South Wales.
Tomingley can recover 369,261 ounces of gold over a 7.5 year mine life, representing A$516 million in revenue, according to the DFS base case.
The project offers a cash flow opportunity as Alkane builds its portfolio of projects in the central west of the state.
Alkane Resources is currently trading at A$1.16 per share.
