Alara Resources Ltd (ASX:AUQ) is currently raising up to $1.45 million from a 1 for 7 pro rata renounceable rights issue.
The offer is priced at $0.02, with Alara shares last trading at a premium of $0.024.
Rights trading is still underway, and closes on Tuesday 26th July 2016. The issue is fully underwritten by CPS Capital Group.
The new funds will be allocated to the company's Al Hadeetha Copper-Gold project in Oman.
This includes helping to secure mining licence by providing bridge finance to meet pre-operating expenses prior to commencement of mine and plant construction at Washihi.
Alara will also incorporate the recent high-grade copper and gold results into the existing resource model, while continuing to pursue other licences/projects.
Such as meeting commitments on Al Ajal, Mullaq and Daris with the aim of increasing mining inventory to feed a concentration plant at Washihi, and concluding legal action before the Board of Grievances in regard to the Khnaiguiyah Zinc-Copper Project and (if necessary) judgement enforcement in Saudi Arabia.
Alara holds a 70% stake in the Al Hadeetha Copper-Gold Project through a joint venture with Al Hadeetha Investment Services.
Alara's partner, Al Hadeetha Investment Services, are associated with the well-known Al Naba group, owned by Sayyid Khalid Al Busaidi and his family.
Washihi
The current Washihi resource contains 14.1 million tonnes at 0.80% copper and 0.18 g/t gold, and once the final assays have been received, they will be added to the resource model.
Adding interest, recent results included near surface high grade copper and gold outside of the existing model.
Analysis
A key advantage to the Al Hadeetha Copper-Gold project is the support from Alara's joint venture partners in Oman, and the local community which are keen to see the project advanced.
There is also potential for a regional consolidation strategy of other known copper deposits in Oman, providing Alara with the opportunity for economies of scale.
Rights trading:
Shares in Alara last traded at $0.024, with the rights priced at $0.02.
Rights trading ends on the 26th July 2016, providing investors with an opportunity.
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