Alicanto Minerals Ltd (ASX:AQI) is raising a potentially lucky A$7 million via a A$0.13 share placement and is now fully funded to continue its aggressive drilling programs in Sweden’s highly-regarded mining region of Bergslagen.
The first of AQI’s programs is targeting extensions of the historic Sala silver-zinc-lead deposit, while the second involves greenfields exploration around the Greater Falun copper-gold and polymetallic skarn project.
Alicanto recently announced the world-class intersection of 87 metres at 5.3% zinc and 40 g/t silver in a new zone at Sala as well as an intersection of 6,812 g/t silver.
There was strong demand for the placement, which comes ahead of a maiden JORC-compliant inferred resource in the coming quarter at Sala, supported by large long only North American and Australian institutions.
Advancing Sala
Funds raised will be used primarily to fund AQI’s work at its Sala Silver-Lead-Zinc Project and its Greater Falun Copper-Gold Project.
The projects are in the same region which hosts world-class base and precious metals projects including the Garpenberg mine operated by Boliden and the Zinkgruvan mine operated by Lundin.
Bergslagen is seen as a Tier-1 jurisdiction based on its large mineralised systems and pro-mining regime.
The now-closed Falun mine in Bergslagen, has a long-established mining history dating back over the best part of 1,000 years, producing 28 million tonnes of high-grade copper-gold-rich polymetallic ore with high-grade by-products of silver, zinc and lead in modern times.
"Maintain aggressive drilling"
“We have two world-class, large-scale projects and the spectacular drilling results at Sala highlight the size and nature of this mineral system,” Alicanto managing director Peter George said.
“The proceeds of this placement will ensure we can maintain our aggressive drilling program at Sala, which is aimed at extending the known high-grade mineralisation and testing new targets in the lead-up to completion of a maiden JORC resource next quarter.
“We will also continue our exploration efforts at our greenfields project at Greater Falun, where we have intersected high grade copper and gold and have numerus targets to test.”
Placement details
AQI will issue up to 53,846,153 fully paid ordinary shares at A$0.13 each to raise the A$7 million.
The issue price represents a modest discount of 10% to the last close price on Wednesday, November 10, 2021, of A$0.145 and an 8% discount to the 5-day VWAP.
Settlement of the placement is expected to happen on November 22, 2021.