based Alara Resources has completed a $10.58 million capital raising which the company says will help fund the cost of acquiring Khnaiguiyah Zinc-Copper Project in Saudi Arabia. The funds were raised via a placement to professional, institutional and sophisticated investors of 46 million shares at 23 cents per share. Petra Capital managed the placement. Alara was originally spun-out of Strike Resources Limited in May 2007. Strike retained a significant non-core interest in the company. Alara has successfully completed a capital raising to professional, institutional and sophisticated investors of $10.58 million through a placement of 46 million shares at $0.23 per share. The placement received strong support from a range of professional, institutional and sophisticated investors and was well oversubscribed. The placement was managed by Petra Capital Pty Ltd (Petra Capital). Petra Capital will receive a commission on the gross funds raised under the Placement. The new shares issued under the Placement comprise two tranches: (1) Tranche 1: 12 million shares (raising $2.76 million gross) issued within the Company's existing 15 percent placement capacity under ASX Listing Rule 7.1; and (2) Tranche 2: 34 million shares (to raise $7.82 million gross) to be issued subject to shareholder approval under ASX Listing Rule 7.1. The company currently has 80,507,500 shares on issue. Shareholder approval for the Tranche 2 issue will be sought at the annual general meeting of the company scheduled for Nov. 30. The $10.58 million funds raised under the Placement, after expenses of the issue, will be applied principally towards the costs of acquisition of the company's flagship Khnaiguiyah Zinc-Copper Project in Saudi Arabia. The balance of the funds, together with the Company's existing cash and liquid investments of approximately $5.4 million, will be applied towards the advancement of exploration, evaluation and development of the Company's other mineral exploration and development projects and for general working capital purposes. In addition, the company confirms that its largest shareholder, Strike, has sold down its entire 12.75 million interest in the company as part of the book build for the placement, with such shares being placed to professional, institutional and sophisticated investors.
