Alicanto Minerals will raise $3 million to kickstart its drilling program in the 1,000-year-old Falun copper-gold mine in Sweden.

Alicanto Minerals (ASX: AQI) has received binding commitments for a placement to raise $3 million through the issue of 75 million fully paid ordinary shares at 4 cents/share, with proceeds to fund the imminent drilling program at its Falun project.

The issue price represents a discount of 20% to the last close price on August 2, 2023 of 5 cents/share and a 14% discount to the 15-day VWAP of 4.7 cents/share.

AQI says 72.5 million fully paid ordinary shares will be issued within the company’s placement capacity and are not subject to shareholder approval with settlement expected on or around August 10, 2023.

A further 2.5 million fully paid ordinary shares will be issued to chairman Raymond Shorrocks (or his nominees) subject to shareholder approval, which AQI will seek at the AGM in November 2023.

Funds raised from the placement will be used to fund a major drill program at Falun with multiple high priority targets already identified along with costs of the placement and working capital.

Canaccord Genuity (Australia) are acting as lead manager to the placement.

AQI MD Rob Sennitt says lead-up exploration work has been highly successful in identifying several high priority targets within its key area of interest at Falun.

“The proceeds of the placement will enable us to commit to a major diamond drill program with the flexibility to optimise the program to maximum effect,” he says.

“We look forward to getting the drill program underway and confirming the significant opportunity that still exists at and around what was historically a world class copper-gold mine.”

READ NOW: Mine of the Month: The Epic Tale of Sweden’s 1,000-year-old Falun Mine


Follow up drilling at Falun

Following acquisition of the exploration permit that includes the historic Falun mine, AQI now controls more than 60km of the target limestone horizon within a total landholding of 312km2 at Falun.

AQI says very limited exploration has ever been conducted along strike from what was a world class historical copper-gold mine at Falun.

Recent analysis by AQI supports that the historical Falun mine constitutes merely a minor portion of a larger mineral-rich zone that extends for at least 10kms.

AQI’s current focus revolves around a 3.5-km streak of mineralisation between Skyttgruvan-Naverberg and the historic Falun mine.

Following a limited drilling campaign at Skyttgruvan-Naverberg towards the end of 2022, significant mineralisation was detected.

This mineralisation encompassed native silver (with assays indicating silver content reaching up to 744g/t), copper mineralisation (assays reaching up to 1.9% copper), noteworthy gold values (with assays indicating gold content reaching up to 6.65g/t) within wider zones of zinc (assays showing zinc content reaching up to 32.4%).

Following the discovery drilling operation, downhole geophysics revealed a significant electromagnetic conductor that represents an important follow-up target.

Furthermore, there are a series of untested historical gravity targets present along the mineralized horizon, displaying considerable promise for densely packed sulphide mineralization. These targets also warrant subsequent investigation.

In the immediate vicinity of the old Falun mine, available historic data has been uploaded into a comprehensive digital 3D model to assist with brownfields drill targeting.

AQI says several large targets comprising both copper-gold and zinc-copper-lead Falun style mineralisation have been modelled, illustrating the potential for rapid resource growth in the Falun brownfields environment.

ASX AQI Alicanto
Falun regional geology highlighting key area of interest and current high priority targets for follow up drilling. Pic: Supplied (AQI).


Higher priority drill targets in the area of interest that are currently being followed up for the upcoming drill program include:

  • Historic Falun Mine near extensions
  • Continuation of Skyttgruvan-Naverberg trend northwards
  • Gravity anomalies in between Falun and Skyttgruvan-Naverberg
  • Alteration and copper mineralisation at surface WNW of historic Falun
  • Alteration interpreted to constitute proximal HW at two locations SW of historic Falun
  • Mag enhancement-depletion pair in stratigraphy WSW of historic Falun


ASX AQI Alicanto
High priority drill targets in the prospective host horizon of the historic Falun mine. Pic: Supplied (AQI).


Furthermore, additional zinc dominated targets have also been identified around the historic Falun deposit. The zinc zones are strata bound replacement zones which have not been previously followed up and remain open along strike and at depth.



This article was developed in collaboration with Alicanto Minerals, a Stockhead advertiser at the time of publishing.


This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.