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Alkane Resources lifts stake in gold explorer Calidus Resources to 10.19%

The gold producer and rare earths developer has acquired further shares with a total value exceeding $556,000.
Coins coming out of a gold bucket
Alkane has a strategy of investing in junior gold companies with strong potential

Alkane Resources Limited (ASX:ALK) has lifted its stake in gold explorer Calidus Resources Ltd (ASX:CAI) to 10.19% through a series of on-market purchases in the December quarter.

The interest has been increased from 8.81% with the acquisition of a total of more than 19.6 million shares valued at more than $556,000.

Alkane now holds more than 144.6 million shares.

READ: Alkane Resources completes $3.7 million investment into Calidus to develop Warrawoona Gold Project

In October the NSW gold producer and rare earths developer made an initial investment into Calidus by acquiring 125 million ordinary shares at a placement price of 2.95 cents a share.

This investment totalled more than $3.687 million and is part of Alkane’s growth strategy for increasing shareholder value through investing its cash balance in junior gold mining companies.

Calidus was selected for its excellent prospectivity and path through feasibility to development, which is in line with Alkane’s criteria of investments with high exploration potential and near-term development funding requirements.

READ: Alkane Resources’ gold is fuelling prospects for Dubbo rare earths development

Calidus controls the Warrawoona Gold Project 30 kilometres southeast of Marble Bar in the East Pilbara region of Western Australia.

The project has a 712,000-ounce resource and high exploration upside, with outcropping mineralisation at surface at all deposits which are open along strike and down-dip.

Many identified targets have also not yet been tested and the existing surface mineralisation suggests any initial mining operation will be open cut.

To form technical committee

Alkane and Calidus plan to form a technical committee to accelerate development of the Warrawoona project.

This arrangement is expected to bring greater experience and up-to-date commercial cost understanding to the smaller Calidus team.

Alkane brings experience in project approvals, feasibility studies, commercial arrangements and commissioning and operation commencement.

This comes from development of the Tomingley Gold Operations and work undertaken at its Dubbo Rare Earths Project, both in Central West NSW.

READ: Alkane Resources gives notice to terminate $8 million Explaurum investment

Earlier this week, Alkane gave notice to terminate its $8 million investment in Explaurum Ltd (ASX:EXU) after the latter’s board accepted an improved takeover off from Ramelius Resources Limited (ASX:RMS).

The share subscription agreement between Alkane and Explaurum represents a competing proposal to the accepted takeover.

In accordance with its rights under this agreement, Alkane has given notice of termination and requested that the $800,000 deposit be refunded and the $400,000 break fee paid.

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