Alcorn Gold Resources Corporation is raising at least P675 billion through a combination of private placement of shares as well as a stock rights offering to its current shareholders.

In a disclosure to the Philippine Stock Exchange, Alcorn Gold said its board has ratified the implementation of the August 10, 2007 stockholders’ resolution on the capital build-up and the increase in the company’s authorized capital from P700 million to P3.0 billion.

The capital increase shall be through a private placement equivalent to the 25 percent minimum subscription capital or 57.5 billion shares with a par value of P575 million.

“The subscription shall be offered at a price not less than the Company’s par value of P0.01 per share with 25 percent payable in cash upon subscription,” the firm said adding that specific terms, conditions and name of subscribers have not been finalized.

The Alcorn Gold board also ratified the implementation of the August 10, 2007 Stockholders’ resolution on the Company’s capital build-up through its offering of 10 billion stock rights worth at least P100 million.

The stock rights shall be offered at a price not less than the Company’s par value of P0.01 per share with 25 percent payable in cash upon exercise and the balance of 75 percent payable within 12 months from the end of offer period.

The stock rights offer has a ratio of one share for every six shares (1:6) held as of record date, with adjustments to be made to avoid issuance of fraction shares.

Record date shall be at least 15 trading days from approval by PSE Board.

The Board had further directed management to undertake the necessary acts to register with the Securities and Exchange Commission the proposed capital increase.