Alkane will subscribe for 66.66 million shares at 12c each to become a 12.2% shareholder in Explaurum.
The issue price represents a 9.1% premium to the 30-day volume-weighted average price of Explaurum shares, and a 10.3% premium to the implied 10.9c price of a scrip takeover bid by Ramelius Resources.
Explaurum will also issue Alkane two tranches of options exercisable by November 2019; one lot at 13c and the other at 14c.
Alkane will have the right to appoint a director, maintain a shareholding of at least 12% and have a first right of refusal on certain fundraisings.
Alkane and Explaurum will form a technical steering committee with a view to accelerating the progress the feasibility and development of Explaurum's Tampia gold project in Western Aust...