Calidus to raise $2.16M to Alkane Resources

Calidus Resources has announced a strategic placement of 80 million shares at 2.7 cents per shares to raise $2.16 million to Alkane Resources. Alkane is a multi-commodity gold exploration company with projects; Tomingley Gold Project and Peak Hill Gold Mine located in NSW.

The funds raised will ensure that the Company has sufficient funding to complete a pre-feasibility study on its Warrawoona Gold Project and conduct further drilling of regional targets and resource infill.

Managing Director of Calidus Dave Reeves believes this program will be extremely beneficial towards future drills.

“This drilling is being done in parallel with the PFS to help ensure that we not only grow the gold inventory, but we also achieve our target of showing the market the strong financial returns we believe will be associated with the Warrawoona Gold project,” he said.

Located in the Eastern Pilbara district in Western Australia the Warrawoona Gold Project spans more than 780 square kilometres. It hosts a total Mineral Resource of 1,248,000 ounces at 1.83 g/t of gold over a continuous 5 kilometre strike site.

There are over 200 historic workings located here with a regional soil program undertaken in 2018 identifying an additional 98,000 ounces of resources.

These new shares are priced at a 13 percent premium compared to Calidus’ last closing price of 2.4 per cent.

After the completion of the placement Calidus will have 1,501 million shares on issue with Alkane holding approximately 15 per cent of the issued securities.

Please find announcement here