Alice Queen Proposes 0.9 Cent Rights Issue Partially Underwritten for $5.77 Million Raise

Rights Issue Aims to Fund Key Horn Island Milestones

Alice Queen Limited (ASX:AQX) is looking to bolster its coffers with a non-renounceable pro-rata rights issue that could bring in up to $5.77 million before costs. The offer, priced at a modest 0.9 cents per new share, invites existing shareholders to subscribe for one new share for every three held at the record date on 11 May 2026. This capital injection is earmarked primarily for advancing exploration at the Horn Island Gold Project, including diamond core drilling, an updated Mineral Resource Estimate, and progressing the mining lease application.

The rights issue is partially underwritten by GBA Capital Pty Ltd for up to $2.18 million, providing a degree of funding certainty amid market uncertainties. Notably, Gage Resource Development Pty Ltd, a significant shareholder holding 43.5% pre-issue, has committed to fully take up its entitlement worth $2.5 million and to priority sub-underwrite any shortfall to maintain its ownership near 51%. This arrangement underscores Gage's intent to preserve its controlling stake post-issue.

Capital Structure and Potential Dilution

If fully subscribed, the rights issue will increase Alice Queen's share count by approximately 641.6 million shares, diluting existing shareholders by 25%. However, those who take up their full entitlements will maintain their proportional ownership. The underwriting and sub-underwriting arrangements mean that shareholders who do not participate risk dilution, with Gage and the underwriter poised to absorb the shortfall shares.

The company’s current option structure remains unchanged by the issue, with over 1.3 billion options on issue at various exercise prices and expiry dates. The underwriter is also set to receive options as part of its fee, subject to shareholder approval.

Risks Highlighted Amid Speculative Exploration

The prospectus candidly outlines a suite of risks, ranging from the potential termination of the underwriting agreement to the speculative nature of mineral exploration. Market conditions, liquidity risks, and the possibility of dilution are flagged as immediate concerns for investors. Moreover, Alice Queen’s operations hinge on obtaining and maintaining tenements, managing third-party relationships, and navigating environmental and community engagement challenges.

Exploration success is uncertain, and while recent announcements have highlighted promising targets, including a new high-grade gold zone at the Viani project in Fiji, the Horn Island project remains the primary focus for the funds raised. The company’s prior new high-grade gold zone discoveries and resource updates at Horn Island are critical milestones that the rights issue aims to underpin.

Timetable and Shareholder Participation

The offer opens on 14 May 2026 and closes on 4 June 2026, with shares expected to be issued by 19 June. Eligible shareholders in Australia, New Zealand, Japan, China, and other jurisdictions may participate, although the rights are non-renounceable and cannot be traded. Payment options include BPAY for Australian shareholders and electronic funds transfer for others.

Given the company’s recent trading resumption after regulatory queries and its ongoing efforts to upscale exploration funding through placements and rights issues, this capital raise is a key step in maintaining momentum. The company’s $280K placement boost earlier this year set the stage for this more substantial raise.