Alien Metals, an AIM-listed minerals-exploration company, has announced its intention to raise up to £2 million ($2.5 million) through a discounted share placing for the purpose of funding exploration activities and general working capital. The company plans to issue 1 billion new common shares at a price of 0.2 pence per share, representing around 16% of the enlarged issued share capital. This share price is a discount to the closing price on Tuesday and a 13% discount to the closing price on Wednesday.
The funds raised will be used to support salaries, overheads, corporate activities, and working capital in the UK and Australia until early 2024. In addition, the proceeds will be allocated for exploration activities, with a focus on the Hancock and Pinderi Hills projects in Western Australia.
The share placing will be facilitated through an accelerated bookbuild process, and trading of the new shares is expected to commence around August 17th. Independent investment bank WH Ireland Ltd. will act as the bookrunner for the placement. Notably, Chairman Alwyn Vorster and Chief Executive Troy Whittaker have expressed their intention to participate in the fundraising.