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  • Junior explorer Alara Resources (AUQ) soared on the ASX today after announcing a share placement to partner company Al Tasnim Infrastructure
  • Alara will place $1.9 million worth of new shares to Al Tasnim at 2.7 cents each — a neat 125 per cent premium to Alara’s last closing price
  • This weaves more of a web between the two companies, which are already intertwined
  • Al Tasnim owns 19 per cent of Alara’s joint venture company Al Hadeetha Resources, and is also a major shareholders of Alara’s mining services arm, ARL
  • Now, Al Tasnim will become a major shareholder of Alara itself, with the shares issued under the placement to represent 10 per cent of Alara’s total share issue once placed
  • Alara will use the fresh funds to develop its Daris copper-gold project in Oman
  • Shares in Alara gained almost 67 per cent today to close at 2 cents each

Alara Resources (AUQ) soared on the ASX today after announcing a share placement to partner company Al Tasnim Infrastructure.

The junior explorer has tapped Al Tasnim for $1.9 million, with new share to be placed at 2.7 cents — a neat premium of 125 per cent to Alara’s last closing price.

Alara plans to issue the shares in two equal tranches — the first to be issued upon receiving 50 per cent of the total placement payment today, and the second in three months’ time.

Alara will use the extra cash to develop its Daris copper-gold project in Oman.

The placement to Al Tasnim weaves more of a web between the two companies, which are already fairly intertwined.

Al Tasnim is currently a 19 per cent shareholder in Alara’s joint venture company, Al Hadeetha Resources. On top of this, Al Tasnim is a major shareholder of Alara’s mining services arm, ARL.

Now, Al Tasnim has become a major shareholder of Alara itself, with the new shares under the placement to represent 10 per cent of all AUQ shares on issue once placed.

Alara Chairman Stephen Gethin welcomed the company’s new shareholder.

“The placement to Al Tasnim will strengthen the strategic relationship between the two companies, as we work together to bring the Al Hadeetha copper gold project into production,” Stephen said.

Along with Daris and Al Hadeetha, Alara owns the Khnaiguiyah zinc-copper project in Saudi Arabia.

Shares in Alara closed 66.7 per cent higher today at 2 cents each. The company has a $12.7 million market cap.

AUQ by the numbers
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