Alloy Resources raising $1.25M to advance Horse Well JV

THE BOURSE WHISPERER: Alloy Resources (ASX: AYR) has received firm commitments from professional and sophisticated investors to raise $1.25 million.

The cash will be raised through the placement of 250 million ordinary fully paid shares at 0.5 cents per share.

Alloy Resources indicated the proceeds from the Placement will principally be used to fund the company’s ongoing 40 per cent contribution to the Joint Venture with Doray Minerals (ASX: DRM) at the Horse Well gold project.

Funds will also be distributed to undertake exploration programs at the company’s Ophara cobalt-gold project in Broken Hill, which will be designed to define the size and grade of the Great Goulburn prospect.

“We are very pleased to have received a very strong response from existing and new shareholders to participate in this raising,” Alloy Resources executive chairman Andy Viner said in the company’s announcement to the Australian Securities Exchange.

“The placement leaves the company well-funded to maintain its equity in the Horse Well JV whilst also enabling implementation of high-impact exploration at the exciting Ophara cobalt-gold project.

“At the Great Goulburn prospect we have 1.5 kilometres strike of an outcropping cobalt-gold mineralised trend, which has only had six shallow drill holes into it.

“We think there is an excellent opportunity to quickly extend this strike length through soil sampling and geophysics, and also start drill definition of the mineralisation in the coming months.”