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Alkane Resources Attracts Fidelity Worldwide Investment As Substantial Shareholder

Alkane Resources (ASX:ALK) has received a notice of initial substantial shareholding from major asset manager FIL Limited (Fidelity Worldwide Investment), which holds a 10% stake in the company.

Fidelity Worldwide Investment managed over US$274.9 billion for private individuals and institutions as of 31 March 2014.

FIL had bought shares in the company between 3 March to 16 June at prices ranging from $0.26 to $0.40.

This also included its participation in Alkane's recent placement of 40 million shares priced at $0.26 each to raise $10.4 million.

Funds from this placement will be used to supplement existing cash reserves to progress the Dubbo Zirconia Project front end engineering design.

This will provide bankable standard capital and operating costs to assist with project funding.

Funds will also be allocated to further DZP product development, enhancement and marketing; the Development and acquisition of certain water resources for the DZP and certain acquisitions of land within the DZP area; and Other DZP related expenditures.

Alkane is targeting production from the DZP in 2016, which is a very large polymetallic resource of the metals zirconium (hafnium), niobium (tantalum), yttrium and rare earths.

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