Alara Resources Secures $3.4 million in Strategic Placement to Ease Loan Burden

Highlights:

• Alara Resources Limited (ASX: AUQ) raised up to A$3.4 million through a private placement with major shareholder ATI and Director Vikas Jain.
• Funds will be used to repay US$1.59 million of a loan from Trafigura Pte Ltd, due by 15 July 2025, and cover future interest and tax obligations.
• Placement shares priced at A$0.04 represent a 60% premium to the 30-day VWAP, indicating strong confidence from insiders.

Capital Injection from Major Stakeholders to Support Debt Repayment

Alara Resources Limited (ASX: AUQ), a base and precious metals company with key projects in Oman, has entered into subscription agreements for a private placement of up to A$3.4 million. At the time of writing, the capital raise involves the issue of 85 million shares at A$0.04 each to major shareholder Al Tasnim Infrastructure LLC (ATI) and Director Mr Vikas Jain, both of whom are demonstrating continued support for the company’s long-term outlook.

ATI is expected to contribute A$2.4 million, while Mr Jain (or his nominee) will provide A$1 million, pending shareholder approval at a general meeting scheduled for 8 July 2025. The shares are priced at a 60% premium to the 30-day VWAP, signalling strong insider confidence.

Proceeds Target Urgent Trafigura Loan Repayment

The funds raised will be used primarily to repay a portion of Alara’s US$3.45 million (A$5.31 million) loan facility with Trafigura Pte Ltd. Alara must repay US$1.59 million (A$2.45 million) by 15 July 2025 and needs immediate liquidity to meet this deadline. In addition to principal repayment, approximately A$856,618 will be allocated to cover future interest payments, withholding tax, and associated bank fees up to 30 June 2026.

Strategic Focus on Oman Projects and Financial Stability

Chairman Stephen Gethin stated that this capital raise is a vital step in stabilising the company’s finances and progressing its Al Wash-hi Majaza Copper-Gold Project. The placement not only demonstrates stakeholder confidence but also gives Alara the runway needed to finalise a planned rights issue and meet operational costs in Oman.

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