Alkane Resources Limited
(ASX:ALK) has announced plans to raise approximately $16 million in new capital through a pro-rata traditional non-renounceable entitlement offer.
Under the offer, eligible shareholders will be entitled to apply for 1 new share for every five existing shares held, at an issue price of $0.20 per new share.
The offer price represents a discount of just less than 8 percent to the closing price on Friday 22 April.
The funds raised will be applied to the advancement of the Dubbo Zirconia Project through to receipt of project financing funds.
Alkane recorded a net profit of $6.33 million at 31 December 2015.
