Ashurst has advised Alkane Resources Ltd (Alkane) in a A$10.4million equity raising for the further development of its Dubbo Zirconia Project (DZP) in Central West NSW.

Alkane announced the equity raising to institutional and sophisticated investors of 40 million shares at A$0.26 per share, with the funds raised from the placement to be used for:

• Progression of the DZP front end engineering design for bankable standard capital and operating costs to assist with project funding;
• Further DZP product development, enhancement and marketing;
• Development and acquisition of certain water resources for the DZP;
• Certain acquisitions of land within the DZP area;
• Other DZP related expenditures; and
• General working capital requirements including fees associated with the offer.

Lead partner in this matter Roger Davies said: "We are delighted to have again assisted Alkane Resources Ltd with an equity raising, having advised on a larger placement and rights issue by Alkane in 2012. These funds will help Alkane realise its goal of developing a world class zirconium, hafnium, niobium, tantalum, yttrium and rare earths project in the Central West of New South Wales."

Roger was assisted by special counsel Matthew Rumpus and senior associate Elizabeth Hourigan.