Aldoro Resources (ASX: ARN) joined ASX ranks at midday today at a 5% premium to its $0.20 issue price, after raising $4.5 million to advance its nickel-cobalt assets in Western Australia.
The company’s shares started trading at $0.21 before rising further to $0.22 within the first hour.
Under the offer, Aldoro issued 32 million shares at $0.20 each to raise the $4.5 million, which will fund the costs of acquiring the Leinster, Ryan’s Find, Cathedrals and Karlgarin projects.
Offer proceeds will also be used to begin exploration at Leinster and Ryan’s Find and the other assets once appropriate licences have been granted.
Aldoro will secure 100% of Ryan’s Find, which comprises a granted tenement and two applications encompassing 186 square kilometres between Coolgardie and Southern Cross.
About 3km of nickel strike has been identified at the project by previous explorers and preliminary drilling had uncovered nickel-in-laterite and nickel sulphide mineralisation.
Cobalt has also been identified at the project in rock chip samples.
Western Mining Corporation undertook most of the historical exploration across the tenements in the 1970s.
Aldoro also plans to follow up nickel-copper sulphide targets that have been unearthed.
Meanwhile, at Leinster, Aldoro will own 80% of the non-gold rights of two granted tenements covering 93sq km.
The project is about 280km from Kalgoorlie and is believed prospective for nickel sulphide mineralisation.
Offer proceeds will be used to carry out both ground and airborne surveys to firm up targets. High priority targets will be aircore and diamond drilled.
The Kalgarin project comprises two exploration licence applications that encompass 107sq km and is located in WA’s central wheatbelt region.
At Kalgarin, Aldoro is hoping to uncover nickel-cobalt mineralisation similar to Golden Mile Resources’ (ASX: G88) Quicksilver asset.
Over at Cathedrals, the project covers 605sq km near Leonora in the Goldfields. Once it secures the exploration permits, Aldoro will begin exploring for nickel-copper-cobalt mineralisation similar to that found at St George Mining’s (ASX: SGQ) nearby Mt Alexander project.