Alkane Resources — Capital/Financing Update 2019

Dec 22, 2019

ASX AND MEDIA RELEASE

23 December 2019

==> picture [150 x 111] intentionally omitted <==

Completion of Capital Raising and Shortfall Notice for Non-Renounceable Rights Issue

Alkane Resources Limited (ASX:ALK) ( Company ) announces the closing of the Capital Raising launched in November 2019. In reference to the offer document dated 28 November 2019 for the Company’s prorata non-renounceable rights issue ( Offer ) of new ordinary shares in the Company ( New Shares ), Alkane advises that proceeds of $20,665,397 have been raised pursuant to the Offer.

The Company received applications from eligible shareholders for 37,573,448 New Shares at the issue price of $0.55 per New Share, representing an approximate 59.4% take up. Together with the placement to institutional and sophisticated investors of $20,000,000 (refer ASX release 28 November 2019), the gross proceeds under the capital raising are $40,665,397 ( Capital Raising ). The placement to institutional and sophisticated investors completed on 5 December 2019, with director participation in the placement subject to shareholder approval at the Company’s general meeting to be held on 7 January 2019 (refer notice of meeting lodged with ASX on 9 December 2019).

Shortfall Notification
Total number of New Shares offered	63,262,028
Number of New Shares allotted:	33,962,690
Number of Additional Shares allotted:	3,610,758
Shortfall	25,688,580
Total Fully paid ordinary securities on issue post allotment	571,431,034

The proceeds of the Capital Raising will be used to accelerate the exploration and development of the Tomingley Gold Corridor, including an exploration drive from the existing Wyoming One pit down to the northern end of mineralisation within the corridor. This will expedite the availability of additional ore sources for the Tomingley mill, which will operate at less than capacity during calendar 2020.

The Directors wish to thank shareholders for their continued support of the Company, and again welcome new shareholders who participated in the Capital Raising.

Both the New and Additional shares are expected to be issued on Tuesday 24 December 2019, with normal trading of the new shares expected to begin on Friday 27 December 2019.

While capacity for Alkane to place shortfall under the rights issue exists, Alkane has no present need or intention to seek placement of these shares.

For further information regarding the Offer please contact Company Secretary, Dennis Wilkins, on +61 8 9227 5677 or via email at dwilkins@alkane.com.au.