Alicanto Secures A$18.1M Non-Dilutive Funding and Advances Mt Henry Drilling
Alicanto Minerals has obtained an A$18.1 million non-dilutive funding package from Stria Lithium, including cash and equity, to support resource expansion at the Mt Henry Gold Project, where diamond drilling is currently underway.
- A$18.1 million funding package secured from Stria Lithium including A$5 million cash and 4 million shares
- 1% NSR royalty granted on Mt Henry Gold Project with potential to increase to 2% upon resource growth
- Diamond drilling progressing to expand the current 915,000oz gold resource, which remains open at depth
- Appointment of Amber Stanton as Non-Executive Director to strengthen governance
- Funding structure avoids equity dilution, supporting resource growth strategy
Non-Dilutive Funding Package from Stria Lithium
Alicanto Minerals Limited (ASX:AQI) has secured a non-dilutive funding package totalling A$18.1 million from Stria Lithium Inc. (TSX-V: SRA) to advance exploration and resource growth at its Mt Henry Gold Project in Western Australia. The package includes an upfront cash payment of A$5 million and 4 million Stria shares valued at approximately A$3.1 million in exchange for a 1% Net Smelter Return (NSR) royalty on the project.
Additionally, Stria may invest a further A$10 million if Alicanto reports a Mineral Resource Estimate of at least 2.0 million ounces at a minimum grade of 0.8 g/t gold, which would increase the royalty to 2% NSR. Completion of the transaction is subject to customary regulatory and shareholder approvals by Stria. Alicanto will also retain a Right of First Refusal over any sale of the royalty by Stria.
Drilling Campaign to Expand 915,000oz Resource
Diamond drilling is underway at Mt Henry and the nearby Selene deposit, with two rigs currently operating. The drilling aims to test and expand the existing 915,000-ounce gold resource, which remains open along strike and at depth. Historical drilling has generally been limited to depths of less than 100 metres, highlighting potential for significant resource growth through deeper drilling.
Early drilling observations align with Alicanto’s geological model, reinforcing confidence in the system’s growth potential. This drilling campaign follows Alicanto’s recent acquisition of the Mt Henry Gold Project and the launch of a 50,000-metre multi-rig drilling program designed to upgrade and extend the resource along a 16-kilometre mineralised corridor, as previously reported in the company’s extensive drilling campaign announcement.
Board Changes to Support Execution Phase
Alicanto has appointed Amber Stanton as a Non-Executive Director, effective immediately. Ms Stanton brings over 25 years of legal, governance, and capital markets experience, including senior roles at Bellevue Gold Limited (ASX:BGL) and Resolute Mining Limited (ASX:RSG). Her appointment coincides with the resignation of long-serving director Didier Murcia AM, who stepped down after more than a decade of service.
Ms Stanton will receive performance rights linked to key milestones, including the announcement of Mineral Resource Estimates of 1.5 million and 2.0 million ounces of gold, as well as a positive economic study for Mt Henry. These incentives align with Alicanto’s focus on advancing the project through its exploration and development phases.
Strategic Implications for Alicanto
The funding arrangement with Stria Lithium strengthens Alicanto’s balance sheet without diluting existing shareholders, providing approximately A$20 million in cash and A$3.1 million in listed equity securities upon completion. This financial position supports the company’s strategy to rapidly grow the Mt Henry resource and advance the project towards development.
Non-Executive Chair Ray Shorrocks highlighted the benefits of the royalty-based funding structure, noting it preserves Alicanto’s upside exposure while enabling accelerated exploration. The company’s focus remains on unlocking value through systematic drilling, particularly at depths beyond previous exploration limits.
Bottom Line?
Alicanto’s non-dilutive funding and active drilling position the company to potentially expand its Mt Henry resource while maintaining shareholder value.
Questions in the middle?
- How will the upcoming drilling results influence Alicanto’s resource upgrade timeline and potential further investment from Stria?
- What are the key risks associated with the royalty funding structure if resource growth targets are not met?
- How will Amber Stanton’s governance expertise impact Alicanto’s strategic execution and capital management?
