Calidus to Raise $2.16M Through Strategic Placement

THE BOURSE WHISPERER: Calidus Resources (ASX: CAI) announced a strategic placement of 80 million shares at an issue price of 2.7 cents a share, for a total of $2.16 million, to Alkane Resources (ASX: ALK).

Alkane Resources is a New South Wales gold producer with a market capitalisation of around $120 million.

Calidus declared the proceeds of the placement, combined with its existing bank balance will ensure the company is cashed up to complete the pre-feasibility study (PFS) currently underway on its Warrawoona gold project in the Pilbara and conduct further drilling of regional targets and resource infill and extensional areas.

The new shares are priced at a 13 per cent premium to Calidus’ last closing price of 2.4 cents before the deal was finalised and will be allotted in one tranche pursuant to the company’s existing capacity under ASX Listing Rules.

“This strategic placement to Alkane means that Calidus can extend the existing drilling program to target new and additional regional and near-resource areas,” Calidus Resources managing director Dave Reeves said in the company’s announcement to the Australian Securities Exchange.

“This drilling is being done in parallel with the PFS to help ensure that we not only grow the gold inventory, but we also achieve our target of showing the market the strong financial returns we believe will be associated with the Warrawoona gold project.”