Alchemy Resources Ltd (ASX:ALY) has raised $5.5 million in a strongly supported placement to fund drilling across its WA and NSW lithium, gold, base and battery metal projects.
The explorer has received binding commitments to raise the capital in the placement to institutional, sophisticated and professional investors.
Alchemy plans to issue 220 million new shares next Monday at 2.5 cents apiece — a 12.3% discount to the five-day volume-weighted average price.
Together with A$2 million in pro-forma cash reserves, Alchemy will use the capital to fund:
- reverse circulation (RC) and aircore drilling and soil sampling at the Karonie lithium and gold projects;
- exploration programs at the Lake Rebecca Project, targeting lithium and gold;
- diamond and RC drilling at the Overflow and Yellow Mountain gold/base metals projects in the Cobar Basin, New South Wales; and
- corporate costs and general working capital requirements.
Alchemy chair Lindsay Dudfield said his company was delighted with the strong support for the raise and to welcome new sophisticated and institutional shareholders to the company.
“The success of the raising is an endorsement of both the prospectivity of Alchemy’s lithium, gold and base metal assets and the quality of our exploration team led by CEO James Wilson.
“We now have the balance sheet to accelerate our exploration programs across Western Australia and New South Wales and we look forward to updating shareholders on the results of these programs over the coming months.”
What's on the cards?
Drilling at Alchemy’s 100% owned Karonie lithium targets is expected to kick off this month with a first-pass program of between 3,000 and 5,000 metres of RC drilling, designed to test the high tenor anomalism at the Hickory Prospect and along strike.
First-pass reconnaissance exploration is also due to begin at Lake Rebecca this quarter, targeting lithium and gold following the recent completion of land access agreements.
In New South Wales, heritage surveys have been completed and land access agreements are nearing completion, which will facilitate programs to drill the high-grade copper, lead and zinc targets at Yellow Mountain.
Follow-up exploration is also planned for the Overflow Project to the north to further enhance the high-grade gold, lead, zinc mineralisation already outlined in previous drill programs.
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