Alkane Resources Repays A$45 Million Project Finance Facility

• Repaid A$45 million Macquarie facility debt using company cash reserves
• Now substantively debt-free apart from standard equipment financing
• Repayment follows recent merger completion
• Maintains strong working capital position
• Facility originally funded Tomingley Gold Operations expansion

Alkane Resources (ASX:ALK) is a gold and antimony producer with three operating mines across Australia and Sweden. The portfolio includes the Tomingley gold mine in New South Wales, the Costerfield gold and antimony operation in Victoria, and the Björkdal gold mine in Sweden. The company also owns the Boda-Kaiser Project, a gold-copper development in New South Wales with an economic pathway outlined in a Scoping Study. Alkane continues exploration at all operations and within the Northern Molong Porphyry Project.

Debt Facility Repayment

Alkane repaid the A$45 million Macquarie facility established for expanding Tomingley Gold Operations using existing cash reserves. The facility served its purpose of funding the expansion project and has been closed. The company now carries only standard equipment financing arrangements.

Managing Director Nic Earner stated the repayment "reflects Alkane's financial flexibility following the completion of the merger" and "gives us increased flexibility to pursue strategic organic and potential external growth opportunities whilst retaining a very strong working capital position." The repayment eliminates associated debt service obligations and facility covenants.

The repayment occurred following the company's merger completion. Alkane prioritised balance sheet strength by using internal cash generation rather than refinancing the facility. This approach removed the debt obligation whilst maintaining operational liquidity for ongoing activities.

Operational Outlook and Growth

The company continues near-mine exploration programmes at all locations to extend resources and mine lives. The Boda-Kaiser Project remains in development pipeline with established economic parameters. Exploration activities within the Northern Molong Porphyry Project continue to identify additional opportunities.

Alkane's debt-free position provides flexibility for funding exploration programmes and evaluating development timing. The company maintains operational cash flow from its producing assets whilst advancing resource development activities. Management can now evaluate organic growth and external opportunities from this improved financial position.

The combination of completed merger and debt elimination establishes a foundation for future capital allocation decisions. Alkane demonstrated cash generation capability through internal funding of this obligation whilst maintaining working capital for ongoing operations and growth evaluation.

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