Alcyone cuts capital raising by $1.5M
15th May 2012
PERTH, May 15 – Alcyone Resources has lopped about $A1.5M off its previously announced $A8M fund-raising share placement and offer to crank up its Texas silver & polymetallic project in SE Queensland, Australia.
The company says due to adverse conditions and instability in global financial markets, its share placement will now be at 4.8c per share, down from the previous 5.3cps, to raise $3.5M. The revised placement will include a free option for each two new shares issued, exercisable at 6cps and expiring on May 14, 2015.
Alcyone will also undertake a share purchase plan to existing shareholders at the same price/option level to raise another $3M.
A number of international institutions and high net worth investors are participating in the placement, including Alcyone’s chairman Charles Morgan, who has applied for $500,000 in the placement.
The cash will be used to bring forward construction of Leach Pad 4 at the Texas project’s Twin Hills operations to advance the ramp-up of silver production, connect to grid power to drive down cash operating costs and begin an expanded exploration program. First ore is expected to be stacked on leach pad-4 during September 2012.
The project produced 75,082oz of silver in April, with cash operating costs trending down towards the long-term target of $A15/oz. The company has 50% of its silver production to the end of December 2012 hedged at about $A33.80/oz.
Alcyone began silver production in July 2011 at its Texas project and is targeting 1.2-1.5Moz pa, with an exploration program aiming at establishing a 7-10 year mine life. Steady-state commercial production is expected by Q4 2012.
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