The Board of multi-commodity miner and explorer, Alkane Resources Limited (ASX: ALK) “Alkane” has approved an investment into gold exploration company Explaurum Limited (ASX:EXU) “Explaurum” subject to Explaurum shareholder approval. This represents Alkane’s second strategic investment following its financing transaction with Calidus Resources Limited announced on 17 October 2018.
Subject to Explaurum shareholder approval, Alkane will invest A$8.0 million in Explaurum through placement of 66,666,675 ordinary shares at an issue price of 12.0 cents per share to become a 12.2% shareholder in Explaurum.
With a strong cash position, Alkane’s strategy for increasing shareholder value includes investing part of its cash balance in junior gold companies and projects that have passed its due diligence review and investment criteria, namely investments that have high exploration potential and/or require near-term development funding. Alkane’s cash and bullion position as at 30 September 2018 was A$82.4M.