Alien Metals Ltd (AIM:UFO, OTC:ASLRF) said it has raised a gross £1.5mln through a share placing and will use the proceeds to progress its Western Australian projects.
The company placed 300mln shares to certain investors at 0.5p each, a 23% discount to its closing share price yesterday.
Alien’s shares fell 15.4% to 0.55p in early morning trading on Thursday.
Newly appointed chairman Roderick McIllree acquired 50mln shares, taking his holding in the company to 0.99%, and chief executive Bill Brodie Good acquired 2mln shares, the company said.
READ: Alien Metals appoints experienced mining executive Roderick McIllree as its executive chairman
Alien Metals said net proceeds from the placing will help accelerate a previously announced drilling programme at the Brockman iron ore project and to progress a new drilling programme at Sirius Extension Target at the Hancock iron ore project.
The proceeds will also be used for the Munni Munni platinum group metals project where they will accelerate a previously announced drilling programme for metallurgical samples, progress a geochemical programme, upgrade database and geological software, and progress a resource review (and update) for the project.