Alicanto Minerals (ASX:AQI) has secured a non-dilutive funding package valued at $18.1 million from Stria Lithium (TSX-V:SRA) to support a resource expansion at the Mt Henry Gold Project.
The funding package will include an upfront cash payment of $5 million in exchange for a 1% net smelter return (NSR) royalty at the Mt Henry Gold Project, along with 4 million shares, valued at $3.1 million, and the potential for a further $10 million cash investment.
Stria will pay an initial $1 million in cash as a non-refundable deposit, which will be credited to the $5 million payment.
The further cash payment will follow Alicanto releasing a resource estimate of at least 2 million ounces at greater than 0.8 grams per tonne gold, which will boost Stria’s NSR royalty to 2%.
Non-executive Chairman Ray Shorrocks says the funding will strengthen the company’s balance sheet as it executes its resource growth strategy at Mt Henry.
“The board has deliberately structured this funding via a royalty, rather than issuing equity, to maintain maximum exposure to the upside while advancing the project at pace,” Shorrocks says.
“Given the wide-open nature of the mineralisation and limited drilling below 100m, we believe this drilling could unlock substantial value at Mt Henry.”
Alicanto has also appointed Amber Stanton as a non-executive director as of today (9 April), following Didier Murcia’s resignation.
Stanton has more than 25 years of experience in advising resource companies, currently acting as general counsel and company secretary for Bellevue Gold (ASX:BGL).
“At the same time, we have strengthened the board to reflect the company’s transition into an active execution phase,” Shorrocks adds.
“Amber Stanton brings deep legal, governance, and capital markets experience, which will be highly valuable as Alicanto advances its strategy at Mt Henry.”
Alicanto Minerals is an emerging gold company focused on advancing the Mt Henry Gold Project in Western Australia.
Write to Maddison Elliott at Mining.com.au
Images: Alicanto Minerals
