Investors back Alicanto with $7m raising ahead of Sala mineral resource announcement
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Investors have backed Alicanto Minerals in at its Sala silver mine and Greater Falun copper-gold project in Scandinavia, pumping $7 million into a placement to fund further exploration.
Institutional investors in North America and Australia are seeing the upside at the high grade projects, applying for the bulk of the $7 million capital raising priced at 13c a share.
It follows the release of a “world class” intersection in drilling at Sala, historically one of the world’s highest grade silver mines, of 87m at 5.3% zinc and 40g/t silver.
Other drill hits by Alicanto (ASX:AQI) have included an intersection of 6812g/t silver.
Along with hunting for extensions and new lodes at the Sala mine, Alicanto is also preparing to release a maiden inferred resource estimate next quarter.
Sala was mined to around 290m deep historically over 500 years up to 1962, producing 200Moz of silver at an average grade of 1244g/t and 35,000 tonnes of lead.
It is complemented in Alicanto’s portfolio by the Greater Falun project nearby, mined over the best part of 1000 years, producing 28 million tonnes of high-grade copper-gold-rich polymetallic ore.
Both projects are located in the Bergslagen region of Sweden, a Tier-1 mineral belt which hosts Boliden’s massive Garpenberg mine and Lundin’s Zinkgraven.
“We have two world-class, large-scale projects and the spectacular drilling results at Sala highlight the size and nature of this mineral system,” Alicanto managing director Peter George said.
“The proceeds of this placement will ensure we can maintain our aggressive drilling program at Sala, which is aimed at extending the known high-grade mineralisation and testing new targets in the lead-up to completion of a maiden JORC Resource next quarter.
“We will also continue our exploration efforts at our greenfields project at Greater Falun, where we have intersected high grade copper and gold and have numerous targets to test.”
This article was developed in collaboration with Alicanto, 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.