The company, which commenced the quarter with A$3 million in the bank, has secured firm commitments for a $7 million placement to follow up on what it described as "spectacular intersections" at Sala and complete a maiden resource estimate.

 

The raising was priced at 13c, a 10% discount to recent trading, and was said to have been largely taken up by large, long-only North American and Australian institutions.

 

Canaccord Genuity and PAC Partners Securities managed the placement.

 

An inferred resource is expected before year's end and comes after the company revelled an intersection of 87m at 5.3% zinc and 40 grams per tonne silver, including 2m at 36.4% zinc, in a new zone as well as an intersection of 6812gpt silver.

 

The results came from historical data released by the Swedish Geological Society for the first time, but company is completing its own holes with three diamond rigs, with more assays pending.

 

Alicanto managing director Peter George said recent results highlighted the size and nature of the Sala system, and the cash injection would help the company maintain its aggressive drilling program that is seeking to extend the known lodes and locate additional lodes within the underexplored project.

 

Sala produced at an estimated average grade of 1244gpt, with peaks of 7000gpt, prior to 1908, but has seen little subsequent exploration.

 

Some funds will also be directed to its greenfields efforts in the Greater Falun copper-gold project, which is also located in the mineral-rich Bergslagen district, which hosts world-class base and precious metals projects such as Boliden's Garpenberg mine and Lundin Mining's Zinkgruvan operation.

 

Alicanto only secured Sala in February and the stock hit 12-month peak of 22c recently off the back of its work at Sala. Its shares eased 2% today to 14.2c, valuing it at $48 million.