Alice Queen to Raise $1M at 0.4 Cents with Free-Attaching Options
Alice Queen Limited (ASX – AQX) is set to raise $1 million through a two-tranche share placement accompanied by free-attaching options, alongside a bonus loyalty option offer to existing shareholders.
- Placement to raise $1 million at $0.004 per share
- Two-tranche placement with second tranche subject to shareholder approval
- Free-attaching options exercisable at $0.008 expiring June 2028
- Substantial shareholder Gage Resource Development to maintain 51% stake
- Bonus loyalty options offered 1-for-10 to existing shareholders
Capital Raising Details
Alice Queen Limited (ASX, AQX) has announced a capital raising initiative aimed at bolstering its exploration and development activities. The company plans to raise $1 million before costs through a placement of fully paid ordinary shares priced at 0.4 cents each. This placement will be executed in two tranches, with the first tranche of approximately $489,000 to be issued under the company’s existing placement capacity, and the second tranche of around $511,000 subject to shareholder approval.
The placement shares will be accompanied by free-attaching options, with one option issued for every two shares subscribed. These options will have an exercise price of 0.8 cents and an expiry date of 30 June 2028, pending shareholder approval. The company intends to seek quotation of these options on the ASX, providing investors with additional potential upside.
Shareholder Participation and Structure
A notable aspect of the placement is the participation of Gage Resource Development Pty Ltd, a substantial shareholder currently holding 51% of AQX. Gage has committed to subscribing for shares in the second tranche to maintain its controlling interest, subject to shareholder approval. This move underscores Gage’s ongoing confidence in the company’s prospects and provides a degree of stability to the shareholder base during this capital raising phase.
Bonus Loyalty Options Offer
In addition to the placement, AQX is offering existing shareholders a bonus loyalty option on a 1-for-10 basis. These loyalty options will carry the same terms as the placement options, including the 0.8 cent exercise price and June 2028 expiry. The loyalty options are being offered at no cost to shareholders with registered addresses in Australia or New Zealand as of the anticipated record date of 30 October 2025. The company plans to list these loyalty options on the ASX, subject to meeting listing requirements.
This loyalty option initiative aims to reward long-term shareholders and potentially enhance shareholder value by providing additional leverage to the company’s future growth.
Use of Funds and Strategic Outlook
Funds raised from the placement will be directed towards a resource update at the Horn Island project, further exploration at the Viani Gold Project in Fiji, and general working capital requirements. These projects represent key growth opportunities for AQX, with the capital injection expected to accelerate exploration activities and potentially unlock value for shareholders.
GBA Capital Pty Ltd is acting as lead manager for the placement, overseeing the process and ensuring compliance with ASX regulations. The company has provided indicative dates for the placement and shareholder meeting, with the first tranche expected to settle around 31 October 2025 and the general meeting to approve the second tranche and options scheduled for early December 2025.
Bottom Line?
As AQX moves to strengthen its balance sheet and reward loyal shareholders, the upcoming shareholder vote will be pivotal in shaping its capital structure and growth trajectory.
Questions in the middle?
- Will shareholder approval for the second tranche and options be secured without delay?
- How will the market respond to the potential dilution from the placement and options?
- What progress can investors expect from the Horn Island and Viani Gold projects post-funding?
