Alien Metals Ltd (AIM:UFO, OTC:ASLRF) said it has raised a gross £1.5mln through a share placing and will use the proceeds to progress its Western Australian projects.
The company placed 300mln shares to certain investors at 0.5p each, a 23% discount to its closing share price yesterday.
Alien’s shares fell 15.4% to 0.55p in early morning trading on Thursday.
Newly appointed chairman Roderick McIllree acquired 50mln shares, taking his holding in the company to 0.99%, and chief executive Bill Brodie Good acquired 2mln shares, the company said.
READ: Alien Metals appoints experienced mining executive Roderick McIllree as its executive chairman
Alien Metals said net proceeds from the placing will help accelerate a previously announced drilling programme at the Brockman iron ore project and to progress a new drilling programme at Sirius Extension Target (NYSE:TGT) at the Hancock iron ore project.
The proceeds will also be used for the Munni Munni platinum group metals project where they will accelerate a previously announced drilling programme for metallurgical samples, progress a geochemical programme, upgrade database and geological software, and progress a resource review (and update) for the project.