Alliance Resources (ASX:AGS) has secured a $1,278,184 loan facility from Gandel Metals, a company related to its director Ian Gandel.
Funds from the loan have been used to assist Alliance Craton Explorer meet the November cash-call for the Four Mile Uranium Project in South Australia.
The company is conducting a 2 for 11 non-renounceable rights issue priced at $0.08 per share to raise up to $4.96 million.
This includes one free attaching option exercisable at $0.15 each and expiring on 30 September 2015 for every share subscribed.
If the take-up of shares exceeds 50%, proceeds from the rights issue will be used to repay the loan facility.
Alliance had elected not to contribute to the 2015 program and budget for Four Mile, which started in-situ mining in April 2014.
Production since then has totalled 1,125,476 pounds with Alliance’s share being 281,369 pounds.
September quarter C1 costs were $24.48 per pound.
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