Alice Queen to Raise $960,000 via Two-Tranche Share Placement with Options
Alice Queen Limited is set to raise nearly $1 million through a two-tranche share placement, with substantial shareholder support and options attached, aiming to fuel exploration at its Viani project.
- Placement to raise approximately $960,000 before costs
- Shares priced at $0.004 each with free-attaching options at $0.008 exercise price
- Two-tranche structure: first tranche under existing capacity, second tranche subject to shareholder approval
- Major shareholder Gage Resource Development and company directors to participate in second tranche
- Funds earmarked for Viani exploration, project portfolio review, and working capital
Capital Raise Details
Alice Queen Limited (ASX: AQX) has announced a placement designed to bolster its financial position with an injection of approximately $960,000 before costs. The company will issue shares at a modest price of $0.004 each, accompanied by free-attaching options exercisable at $0.008, expiring in mid-2028. This structure offers investors potential upside while providing the company with immediate capital.
The placement is structured in two tranches. The first tranche, raising around $411,000, will be completed using the company’s existing placement capacity under ASX Listing Rule 7.1, allowing for a swift execution expected around 23 May 2025. The second tranche, raising approximately $550,224, requires shareholder approval and includes participation from key stakeholders.
Shareholder Support and Strategic Participation
Notably, Gage Resource Development Pty Ltd, which holds a controlling 51% stake in Alice Queen, has committed to maintaining its majority position by participating in the second tranche. Additionally, two company directors will also take part, signaling confidence from within the leadership team. This insider participation often reassures the market about the company’s prospects and the intended use of funds.
Shareholder approval for the second tranche and the issuance of the free-attaching options is expected to be sought at a general meeting around 30 June 2025. This step introduces some timing uncertainty but is a standard procedure for placements exceeding certain thresholds.
Use of Funds and Future Outlook
The capital raised will primarily support ongoing exploration and diamond core drilling activities at the Viani project, a key asset in Alice Queen’s portfolio. The company also plans to review its existing projects and assess new opportunities, alongside covering general working capital needs. This balanced allocation suggests a focus on both advancing current assets and maintaining operational flexibility.
GBA Capital Pty Ltd has been appointed as lead manager for the placement, ensuring professional handling of the capital raise process. Details of the associated fees have been disclosed in accompanying regulatory filings.
Overall, this placement represents a strategic move by Alice Queen to secure funding while maintaining shareholder alignment and positioning itself for the next phase of exploration and growth.
Bottom Line?
Alice Queen’s successful placement and shareholder backing will be pivotal as it advances exploration and navigates upcoming approvals.
Questions in the middle?
- Will shareholder approval for the second tranche and options be secured without delay?
- How will the new capital impact the company’s exploration timeline and results at Viani?
- What are the potential dilution effects on existing shareholders following the placement and option exercises?
