Alicanto Minerals (ASX:AQI) has finalised a non-dilutive funding package totalling $18.1 million with Stria Lithium, a move designed to accelerate the expansion of the Mt Henry Gold Project.
The announcement comes as Alicanto ramps up exploration efforts to grow the existing 915,000oz resource, with diamond drilling currently underway at the Mt Henry and Selene deposits.
The funding structure is notably non-dilutive, allowing Alicanto to maintain maximum upside for existing shareholders while securing the capital necessary for aggressive resource growth.
The $18.1 million package is comprised of three key components: an immediate $5 million upfront cash payment from Stria in exchange for a 1% net smelter return royalty; the issuance of 4 million Stria shares valued at approximately $3.1 million; and a potential $10 million cash milestone payment.
This further investment is contingent upon Alicanto reporting a mineral resource estimate of at least 2.0Moz at a grade of ge 0.8g/t Au in accordance with JORC Code standards, which would subsequently increase Stria’s royalty to a 2% NSR.
Following the completion of this transaction, Alicanto’s balance sheet is expected to be bolstered to roughly $20 million in cash and over $3 million in listed equity.
Non-Executive Chair Ray Shorrocks highlighted that the funding ensures the company is well-equipped to test the "wide-open nature" of the mineralisation at Mt Henry, particularly through systematic deeper drilling below 100 metres, where historical exploration has been limited.
At the time of reporting, Alicanto Minerals’ share price was $1.76.