Strong demand was received from existing shareholders, as well as a number of new institutional investors.
The proceeds will fund an extensive 20,000-metre follow-up drilling program at Alicanto’s Greater Falun Copper-Gold Project in Sweden.
This drill program will start early next year, immediately following completion of the current program.
Huge potential of Greater Falun
Alicanto managing director Peter George said: “The strong demand for the placement reflects the growing recognition of the huge potential of Greater Falun, the strength of the initial drilling results and its location in a tier-1 jurisdiction.
“Given what we have seen in the drilling, as well as the highly promising targets not yet tested, we want to keep building on the great work undertaken so far.
“The proceeds of this raising will allow us to prepare that program and begin drilling early in the new year.”
Alicanto will issue up to 46,153,847 fully paid ordinary shares at an issue price of 13 cents per share under the placement.
This is a 10.3% discount to the last close price on November 17, 2020, of 14.5 cents.
Canaccord Genuity (Australia) Limited acted as lead manager and PAC Partners Securities Pty Ltd acted as co-manager.
Settlement is expected to take place on November 27, 2020.
Strong results from current program
The decision to proceed quickly with an aggressive new drilling campaign follows strong results from initial holes in the current program.
Visual sulphides have been intersected, including chalcopyrite, at the Green Mile and Heden targets.
The current 4,000-metre drilling program is 40% complete and is set to be finished by the end of the year.
A second diamond drill rig has started drilling the Heden target to continue testing residual gravity and magnetic anomalies recently detected and the undrilled strong garnet-pyroxene-chalcopyrite alteration coincident with a regionally extensive limestone mineralised horizon over at least 3 kilometres of strike.
Seeking more base/precious metal projects
Alicanto’s landholding at Greater Falun has doubled in 12 months to more than 300 square kilometres and it is now believed to contain at least 12 copper-gold and/or polymetallic skarn systems.
It believes Greater Falun is a district-scale opportunity in a tier-1 location, with historical high-grade and large-tonnage production.
Falun mine previously produced 28 million tons at 4% copper, 4 g/t gold, 5% zinc, 35 g/t silver and 2% lead.
Alicanto is actively looking for further base and precious metal projects to add to the Greater Falun Project and its current Scandinavian portfolio.