Funds will be used to develop the Dubbo Zirconia Project (DZP) in central New South Wales.
At the board's discretion, a shortfall of up to $4.1 million worth of shares may be placed at the offer price of $0.20 over the coming 3 months.
The DZP is located 400 kilometres northwest of Sydney and is a large polymetallic resources containing zirconium, hafnium, niobium, yttrium and rare earths.
The project has a net present value (NYSE:NPV) of US$0.92 billion and securing financing is currently in progress.
Alkane is developing the DZP alongside its gold producing and cash generating Tomingley Gold Operations.
Alkane is planning to acquire the remaining key land parcel within the DZP project area within the June quarter.
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