Alice Queen Receives Strong Investors’ Interest for $ 3.88 Million Placement to Fund Northern Molong Belt Assets

Advanced gold and copper explorer, Alice Queen Limited (ASX: AQX) recently informed the exchange that it has received binding commitments from a range of professional, sophisticated and other investors for a $ 3.88 million capital raising program, targeted towards funding the Company’s drilling activities at its assets in in New South Wales (NSW).

Equity Placement Receives Overwhelming Support from Investors

Under the placement led by joint lead managers Evolution Capital Advisors Pty Ltd and BW Equities Pty Ltd, the Company plans to issue approximately 121 million fully paid ordinary shares, each at a price of $ 0.032, representing an 8.5% discount to its last closing price on ASX (as on 19 February 2020).

The issue of shares expected in the coming days doesn’t require shareholder approval under the Company’s remaining placement capacity under LR7.1.

Meanwhile, Alice Queen would make a standard capital raising fee payment to the lead managers, which are also eligible for an aggregate of 5 million options with a strike price of $ 0.05 and 5 million options with a strike price of $ 0.06. The issue of options, due to expire two years from the issue date, is subject to shareholder approval to be sought at an upcoming EGM.

Use of Proceeds - Enhancing Value and Prospectivity of NSW Assets

AQX intends to direct the funds raised from the equity placement towards advancing exploration efforts at its portfolio of assets in the Northern Molong Belt (NMB) region in central NSW.

Interesting Read: Alice Queen Releases Update on Northern Molong Belt Porphyry Projects

Funds would be used to –

  • Undertake further drilling activities, particularly at the Boda East target, which is only 700m away from the recent major Boda discovery by Alkane Resources Limited (ASX: ALK), with most recent drill hole delivering 689m @ 0.46g/t gold and 0.19% copper.
  • Advancing activities at the nearby Mendooran and Yarindury prospects within the northern Molong Belt.
  • Meeting general working capital requirements including costs of the offer and the placement.

While expressing his gratitude towards shareholders for their continued support and confidence in Alice Queen, Mr Buxton stated that the Company is looking forward to delivering on its objective of enhancing the value and prospectivity of assets in the northern Molong Belt over the course of 2020.

AQX Projects in Highly Prospective Northern Molong Belt

Alice Queen’s projects represent ~700km2 of the highly prospective ground of the Molong Belt, which is located in north along strike from Cadia-Ridgeway mine (50m ounces gold + 9m tonnes copper) and adjacent to ALK’s Boda discovery, following which the Company informed on the improved prospectivity of its projects in the region.

To know more, read Alice Queen Riding High on Yarindury Project with Enhanced Prospectivity.

On 20 February 2020, AQX closed the day’s trade at $ 0.031, with a market cap of $ 27.55 million. The last six-month return of the stock was noted at 161.54%.

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