Jindalee Resources (ASX: JRL) will jointly underwrite the $4.2 million rights issue by Alchemy Resources (ASX: ALY).
Jindalee owns 9.8 million shares in Alchemy, and with a company associated with Jindalee chairman Mark Scott, will jointly underwrite Alchemy's 1 for 3 rights issue at $0.13 per share.
Key to this underwriting would be that Alchemy owns an extensive 630 square kilometre landholding in the Bryah Basin, which hosts Sandfire Resources' (ASX: SFR) DeGrussa Copper-Gold Project.
The key DeGrussa geological structures and host units look to continue into Alchemy's ground.
In addition, Alchemy has an Indicated Resource of 246,000 ounces of gold at the Gascoyne Project in the Basin at an average grade of 2.22g/t gold, close to existing processing plants.