Rights Issue Halted as Alara Navigates Regulatory Hurdles While Expanding Oman Operations
Alara Resources reports steady copper-gold concentrate shipments from its Oman operations while unveiling promising exploration results at Block 8 and securing the Block 22B concession. The company navigates regulatory challenges with a halted rights issue and prepares for key developments in the coming quarter.
- 16 shipments totaling 3061 MT copper metal and 78.6 kg gold dispatched from Al Wash-hi Majaza plant
- New tailings filter presses arrived, commissioning planned for late June 2025
- Promising gravity survey at Block 8 identifies high-priority H1 anomaly linked to potential VMS mineralisation
- Royal Decree issued for Block 22B exploration concession, enabling exploration planning
- Rights issue discontinued following Takeovers Panel ruling; cash and financing facilities remain robust
Steady Production Momentum at Al Wash-hi Majaza
Alara Resources Limited continues to demonstrate operational resilience at its Al Wash-hi Majaza copper-gold project in Oman, with 16 shipments of copper-gold concentrate dispatched to date. These consignments, totaling 3061 metric tonnes of copper metal and 78.6 kilograms of gold, underscore the plant’s steady output on an average three-week shipment cycle. Despite challenges related to the tailings filter press (TFP) throughput, the company has managed production levels effectively.
Two new interim replacement filter presses have arrived from China and are slated for commissioning by the end of June 2025. These will operate alongside the existing TFP, aiming to enhance processing capacity and reliability. Complementing this, a new concentrate shed designed to house 5000 MT of copper-gold concentrate is under construction, with completion expected by the same timeframe. Efforts to connect the accommodation camp to grid power are also underway, promising reductions in greenhouse gas emissions and operational costs.
Exploration Advances: Block 8 and Block 22B
Exploration activities are gaining traction, particularly at the Block 8 concession where Power Metal’s subsidiary, Power Arabia Ltd, has completed a gravity survey revealing five distinct anomalies. The standout feature, the H1 anomaly, is a strong north-south residual gravimetric anomaly potentially indicative of volcanogenic massive sulphide (VMS) mineralisation. This anomaly, measuring approximately 400 meters in length and 10-15 meters in width, remains open along strike to the north and is cut off to the south by a fault structure.
Encouraged by these findings and historical trenching results, Power Arabia plans an initial diamond drilling program upon formal renewal of the Block 8 license by the Omani Ministry of Energy and Minerals. Additional fieldwork, including ion-leach sampling and rock-chip assays, is ongoing, with results pending.
Meanwhile, the Royal Decree for the Block 22B exploration concession was issued in March 2025, marking a significant milestone for Alara’s joint venture vehicle, Al Hadeetha Resources LLC. This concession covers a substantial area southwest of Muscat and includes older Wash-hi and Majaza licenses. Exploration planning and budgeting are underway to meet the concession’s work commitments.
Daris Project and Mining License Progress
The Daris Copper-Gold Project, comprising two high-grade copper deposits, remains a strategic asset within Alara’s portfolio. The project aligns with the company’s “hub and spoke” model, envisaging ore processing at the Wash-hi Majaza plant. However, the Daris East mining license application has encountered opposition due to proximity to recently allotted land, prompting ongoing negotiations with the Ministry of Housing. A revised mining license application for the Daris 3A5 prospect has been submitted, with grant expectations set for 2025.
Financial and Corporate Developments
Alara’s financial position reflects a mixed quarter. Operating cash outflows amounted to A$2.9 million, with cash and cash equivalents standing at A$11.47 million at quarter-end. The company maintains access to financing facilities totaling approximately A$18.85 million, including a secured OMR 25.98 million loan from Sohar International Bank and a USD 3.45 million loan from Trafigura Pte Ltd.
Notably, Alara discontinued a $15 million rights issue amid Takeovers Panel proceedings that deemed the issue would have resulted in unacceptable circumstances due to potential shareholder concentration shifts. This regulatory hurdle has delayed the company’s planned equity raise and impacted related capital expenditure, including the termination of an order for a permanent tailings filter press.
Directors’ remuneration payments for the quarter totaled A$151,000, consistent with governance disclosures.
Looking Ahead: Key Milestones for June 2025 Quarter
Alara anticipates several critical developments in the upcoming quarter. These include the commissioning of new tailings filter presses at the Wash-hi Majaza plant, announcement of interim drilling results from the mining license expansion and infill drilling program, and commencement of exploration activities at the Block 22B concession. Additionally, Power Metal is expected to advance exploration at Block 8, potentially releasing further updates. The anticipated grant of the Daris 3A5 mining license remains a pivotal event for the company’s growth trajectory.
Bottom Line?
Alara Resources balances steady production with promising exploration, but regulatory and funding challenges will shape its near-term path.
Questions in the middle?
- How will the discontinuation of the rights issue affect Alara’s capital structure and future funding options?
- What are the implications of the H1 gravity anomaly at Block 8 for Alara’s exploration success and resource potential?
- When will the Daris mining licenses be granted, and how will this impact the company’s production and processing plans?
