Alderan Resources Limited (ASX: AL8) Announces $2m Placement
Placement Overview
Alderan Resources Limited (ASX: AL8) has announced a placement aimed at raising $2 million through the issue of 80,000,000 new fully paid ordinary shares. The new shares will be offered at a price of A$0.025 per share, with firm commitments already secured from sophisticated investors. This capital raising is set to enhance Alderan’s project initiatives.
Use of Funds
The funds raised from the placement will be utilised to advance the company’s existing project portfolio and explore new business opportunities. This strategic approach reflects Alderan’s commitment to project development and identifying potential growth avenues.
Details of the Placement
Out of the total shares, 28,000,000 will align with the company’s placement capacity under ASX Rule 7.1, while 19,000,000 shares will follow ASX Rule 7.1A. The remaining 33,000,000 shares are to be subject to shareholder approval at an upcoming extraordinary general meeting (EGM). Each participant in the placement will also receive one free attaching AL8O quoted option for every two new shares issued, pending approval.
Executive Comment
Scott Caithness, Managing Director of Alderan Resources, expressed, “We are excited to secure this funding, which will significantly bolster our project activities.” The company engaged Cygnet Capital Pty Limited as the lead manager for this placement, agreeing to a capital raising fee of 6% on the funds raised, alongside issuing additional options, contingent on shareholders’ approval.
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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