Alicanto taps investors for $30m

The Jeff Sansom-led midcap gold explorer, which has a market cap of $277.31 million, told investors on Wednesday it would tap investors for $30 million, courtesy of a single tranche placement.

Under the capital raise, Alicanto said it would issue around 19.3 million fully paid ordinary shares at an offer price of $1.55 per share.

This offer price represents a 7.2 per cent discount to the company’s final closing price of $1.67 prior to entering its trading halt on June 5.

Canaccord Genuity was appointed both lead manager and bookrunner to the capital raise, while Argonaut Securities and Euroz Hartleys were co-managers. 

Alicanto said proceeds from the capital raise would elevate its overall cash position to $41 million, which would provide an opportunity to undertake an aggressive drilling campaign at Mt Henry, which is located 20km south of Norseman.

On the back of acquiring the project from Westgold Resources for $64.4 million, Alicanto announced it would undertake a 50,000m drilling program, which has already gotten under way.

“With four rigs now operating at Mt Henry, we look forward to delivering drilling results and progressing towards the mineral resource update, which is expected in the December quarter,” Mr Sansom said. 

Last month, Alicanto also elected to enter into multiple earn-out transactions in relation to its Falun, Greater Falun and Sala projects in Sweden – as another mechanism for enhancing its focus on Mt Henry.

The company is also likely to change its name, subject to shareholder approval, from Alicanto to Sinclair Gold – in honour of legendary Norseman Reef prospector Laurie Sinclair – with the meeting for the name change likely to be held early next month. 

Alicanto last traded at $1.42, down 15 per cent, as of 2.25pm AWST.