In late April, multi-commodity company Alkane Resources Ltd launched its plans to raise an estimated $16m in new capital through a pro-rata traditional non-renounceable entitlement offer to help progress the $1b Dubbo Zirconia Project. The announcement comes after the company overcame it's final hurdle in approvals in mid-March, as we reported here.
If you are wondering what all of this means, have a read through our break-down of this capital-raising announcement below.
Alkane is raising additional capital to meet anticipated expenditures necessary for the progression of the Dubbo Zirconia Project (DZP).
This project will make Alkane a strategic and significant world producer of zirconium, hafnium and rare earth products when it commences production, which is antipicated to be in 2018.
The offer is available to all eligible shareholders to raise approximately $16m.
Eligible shareholders include those persons who:
Despite the registered address limitation at bullet point three, Alkane may choose to treat certain shareholders who are not eligible to receive the Entitlement Offer as eligible shareholders.
Eligible shareholders were entitled to apply for 1 new share for every 5 Alkane shares they held as at 7pm (Sydney time) on 29 April 2016, at a price of $0.20 per new share.
Being non-renounceable means that the shares are not transferrable and cannot be sold or traded, and shareholders will not receive any further value than they are eligible for.
Offers close at 7pm Sydney time (5pm Perth time) on Monday 23 May, 2016, however this is indicative only and may be subject to change.
For ongoing updates on the DZP subscribe to Felix Project News.