- Alderan Resources (AL8) is set to raise $2.1 million to progress exploration at its copper-gold projects in Utah
- The company will be raising the money through a placement and convertible notes
- Alderan is currently earning a 70 per cent interest in two Utah projects, Valley-Crossroads and Detroit, through an agreement with Tamra Mining
- Both the projects have seen little modern exploration and have been underexplored
- On market close, Alderan is up 100 per cent and is trading for 12 cents each
Alderan Resources (AL8) is set to raise $2.1 million to progress exploration at its copper-gold projects in Utah, USA.
The company will be raising the money through a placement and convertible notes.
Alderan is offering 18 million shares for 5 cents per share, in an aim to raise $900,000. The issue price is a 16.6 per cent discount to the last ASX closing price of 6 cents.
The company will also issue convertible notes with a value of $1.215 million. The notes will be converted to 5 cents per share upon Alderan receiving shareholder approval.
Alderan intends to seek shareholder approval in the upcoming meeting at the end of the month.
The company will use the funds to explore its Valley-Crossroads and Detroit projects in Utah, where it is earning up to a 70 per cent interest in each project through an agreement with Tamra Mining.
These projects have seen little modern exploration and Alderan also considers them to be underexplored for gold.
Managing Director Peter Williams said the understanding of the geology of its
projects is continuing to get stronger and is hoping for drilling to commence within three months.
“Although these projects are in highly prospective copper-gold and copper-gold-molybdenum areas and have previously hosted shallow copper mining activities, exploration has been piecemeal and opportunistic over the past century due to the lack of ground consolidation,” he said.
“We now have the opportunity to apply modern exploration techniques to this ground and we are excited to be moving forward with our plans to uncover the potential the projects hold,” he added.
On market close, Alderan is up 100 per cent and is trading for 12 cents each.