Explaurum welcomes Alkane investment

JUNIOR gold producer Alkane Resources has agreed to invest A$8 million in takeover target Explaurum.

Explaurum welcomes Alkane investment Explaurum welcomes Alkane investment Explaurum welcomes Alkane investment Explaurum welcomes Alkane investment Explaurum welcomes Alkane investment

Drilling at Tampia

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...