Alice Queen Ltd secures A$3.6 million investment proposal from largest shareholder to advance Fijian gold assets

Alice Queen Ltd (ASX: AQX) has secured a further A$3.6 million investment from its largest shareholder Gage Resource Development to assist in the advancement of the company’s gold exploration activities in Fiji.

The investment will require shareholder approval. Currently, Gage holds an 18.67% stake in Alice Queen.

The company had $1.56 million in cash on 31 December 2023.

Gage Resource is a subsidiary of Beijing Gage Capital Management Co Ltd, a Beijing-based private equity group with US$1.6 billion in funds under management.

Gage has entered into a subscription agreement to acquire ~450 million shares in Alice Queen at A$0.008 each, which represents a 60% premium to the 30-day average share price.

Alice Queen Ltd tenements

Exploration focus on Fiji

The new funds will primarily be focused on facilitating the rapid advancement of Alice Queen’s exploration strategies in Fiji.

The most imminent of these activities is further geological mapping and sampling of the company’s Sabeto project, which is expected to generate targets for diamond core drilling in the coming months.

This will be followed by recommencing exploration at the company’s highly prospective epithermal gold project at Viani.

Gage Capital Chairman Wang Jianying said: “As a result of our recent field trip, we have come to appreciate the exploration potential of Alice Queen and decided to invest further capital to enable the company to plan and execute a more aggressive and focused exploration program.”

Show of support

Alice Queen’s relationship with Gage has developed quickly and positively since Gage made its first investment in the company late last year.

Gage has a significant balance sheet and Alice Queen’s board considers the proposed transaction to be a strong show of support for its current strategy.

Under the terms of the proposed transaction, Gage would have the right to participate in future capital raisings up to the number of securities determined by the company.

 

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