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Alkane Resources Ltd

Alkane Resources invests $2.16 million in Calidus Resources to fund Warrawoona drilling

Calidus is completing the pre-feasibility study on its Warrawoona Gold Project.

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This drilling is being done in parallel with the PFS

Alkane Resources Ltd (ASX:ALK) has subscribed to 80 million shares of Calidus Resources Ltd (ASX:CAI) at an issue price of 2.7 cents a share, for a total investment of $2.16 million.

Proceeds of the placement, together with the company’s existing cash will ensure that Calidus has sufficient funding to complete the pre-feasibility study (PFS) on its Warrawoona Gold Project in the Pilbara and conduct further drilling of regional targets and resource infill and extensional areas.

The new shares are priced at a 13% premium to Calidus’ last closing price of 2.4 cents on April 29, 2019.

Calidus managing director Dave Reeves said: “This strategic placement to Alkane means that Calidus can extend the existing drilling program to target new and additional regional and near-resource areas.

“This drilling is being done in parallel with the PFS to help ensure that we not only grow the gold inventory, but we also achieve our target of showing the market the strong financial returns we believe will be associated with the Warrawoona Gold Project.”

Quick facts: Alkane Resources Ltd

Price: $0.40

Market: ASX
Market Cap: $233.35 m
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