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Alliance Mineral completes placement to Burwill Commodity

AUSTRALIAN miner Alliance Mineral Assets Limited said it has completed its placement with Burwill Commodity Limited after issuing a fourth and final tranche of 17.9 million shares to the Hong Kong-listed firm.

The number of its issued and paid up ordinary shares has correspondingly increased from 537.7 million to 555.6 million, after the recent allotment and issuance.

Alliance Mineral said in early October that it was placing A$19.575 million (S$20.8 million) of shares to Burwill Commodity as its auditor flagged uncertainty about its ability to operate as a going concern if it is unable to raise more funds.

Burwill bought the shares in four tranches, with the subscription price representing discounts of up to 10 per cent of the stock's volume weighted average price of 29.72 Singapore cents on Sept 29.

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Under the initial terms, the fourth tranche was to have been completed by Dec 31, 2017; the schedule was later accelerated as part of a few amendments Alliance announced in end-October.

The subscription shares represent about 15.56 per cent of Alliance Mineral's existing share capital, and 13.47 per cent of its enlarged share capital.

The bulk of the proceeds from the placement will go towards operational and capital expenditure for its Bald Hill project.