Alliance Resources raises further $8.5 million for Four Mile Uranium Project

Alliance Resources (ASX: AGS) has placed the shortfall of 12.5 million ordinary shares from its 1:12 rights issue at 68 cents.

Major AGS shareholder Abbotsleigh was a substantial participant in the shortfall placement.

Shortfall placement has been completed and raised over $8.5 million. Total funds raised from the placement and rights issue including shortfall placement totalled $44.7 million.

Funds raised will be used for AGS's share of development and operating costs at the Four Mile Uranium Joint Venture Project in South Australia. This is planned to commence production in 2010.

AGS believes it is now fully funded to receipt of first revenue from sale of uranium from Four Mile.

The Four Mile uranium joint venture project in South Australia will become the next major global uranium producer in January 2010. Alliance shares were up 10%.

At the Four Mile Project, the inferred mineral resource estimate has increased to 61 million pounds of uranium oxide grading 0.35% or 3500 parts per million uranium oxide - an increase of 90%.

Recently, a maiden resource estimate was released for the Four Mile East deposit. It has an initial resource of 4.1 million tonnes grading 0.31% uranium oxide for 29Mlb of uranium oxide.

Alliance Managing Director Patrick Mutz said that the project had the potential to be the highest grade

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