Ashurst has advised Alkane Resources Ltd (Alkane) on its 1 for 5 traditional non-renounceable pro rata entitlement offer to raise A$16 million (Entitlement Offer) as part of the funding arrangements to progress the development of the Dubbo Zirconia Project (DZP). DZP is a A$1 billion world class deposit of zirconium, hafnium, niobium and rare earths in Dubbo, New South Wales.
The Entitlement Offer closely follows Alkane's announcement that it has obtained the required regulatory approvals to proceeds with the DZP.
Proceeds from the Entitlement Offer will supplement existing cash reserves and be utilised for:
* acquisitions of the remaining key parcels of land within the DZP project area;
* performing DZP pilot plant run(s) to confirm front end engineering and design and other process changes and produce product samples for potential offtake customers;
* development of strategic partnerships to provide value enhancement to published project financials;
* other DZP related expenditures; and
* general working capital requirements including fees associated with the Entitlement offer.
Lead partner on the transaction Roger Davies said: "We are pleased to have advised Alkane on this important equity raising, which demonstrates the strong progress it is making on developing the significant DZP."
Roger was assisted by senior associate Scott Lai, and lawyers Ellen Zhang and Allison Clark.