Alliance Resources Ltd. intends to raise up to about A$5 million from a rights issue.

The proceeds will go toward development activities, including exploration drilling, metallurgical testing and working capital.

Shareholders will be able to subscribe for one new share for every two shares held as of March 21 at an issue price of 9.5 Australian cents apiece.

The offer is partially underwritten to A$4 million by Patersons Securities Ltd.

The company said March 18 that it will issue about 52.1 million new shares if the offer is fully subscribed. It expects to close the offer April 9.

Alliance's flagship asset is the Wilcherry gold project in South Australia.