Alara Resources (ASX:AUQ) shares were flying 80% higher today with shareholder interest updates following a recently closed rights issue and oversubscribed shortfall.
The spike left Alara shares last trading at A$0.017, which represents a 183% increase for the stock since reaching a mid-year low of $0.006.
Trading has coincided with a release formalising director Justin Richard’s acquisition of 20 million shares for a consideration of $200,000 as well as notice that Indian investor Vikas Jain had attained a 19.8% voting interest in the company through share acquisitions totalling $1 million in value.
These investments followed quickly on closure of a rights issue which resulted in the raising of $2.2 million and the issuing of 31.3 million shortfall shares.
The funds are expected to strengthen the economic feasibility of Alara’s Washihi and Daris copper-gold projects in Oman.
Washihi boasts indicated resources of 6.8 million tonnes at 0.9% copper and 0.2g/t gold and inferred resources of 7.3 million tonnes at 0.7% copper and 0.2g/t gold.
Extensive geophysical surveys have been completed over prospective areas within Daris, including 1,200 line kilometres of helicopter-borne electromagnetic VTEM survey, 163 line kilometres of ground magnetic surveys and 20 line kilometres of ground IP and EM survey.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.