WITH Allegiance Mining shares having risen fourfold in the last...

WITH Allegiance Mining shares having risen fourfold in the last year, there was only one major complaint from investors at the group's annual meeting yesterday: they wanted access to more stock in the emerging Tasmanian nickel miner.

At the meeting in Sydney veteran mining commentator and Allegiance shareholder Trevor Sykes asked the board to consider adopting a $5000 share purchase plan at the same 80c a share price given to Chinese nickel company Jinchuan in a recent $38.5 million placement this month.

"I will subscribe, and I think I may even be able to find you an underwriter, which might be me," Mr Sykes said. "We are all very happy here, I'm sure. I'm just trying to make this a bit happier."

Allegiance shares closed 2.5c higher at $1.095 yesterday. They were trading at 92c when the Jinchuan placement and off-take agreement were announced on May 1.

Other shareholders criticised the board for doling out shares to Jinchuan and options to its employees, consultants and directors while failing to offer more stock to its loyal base.

Allegiance executive chairman Tony Howland-Rose said the company would like to conduct a rights issue but since this would require the expensive, time-consuming issuing of a prospectus, it was instead "actively considering" a share purchase plan.

Shareholders were also pestering the board to pay dividends once Allegiance started production at its $77 million nickel operation. The company has already constructed the mine and tailings dam, and expects to open the plant in the fourth quarter, producing 5700 tonnes of concentrate the first year and up to 8500 tonnes the year after.

"I'm in favour of paying dividends, personally," Mr Howland-Rose said. "I think next year we will be arguing not whether to have them, but how much."

The company is also considering a dual listing on the Toronto Stock Exchange, which traditionally values miners higher than its Australian counterpart.

"If we don't acquire a Canadian rating, then a Canadian rating will acquire us," Mr Howland-Rose said.

With nickel trading at record prices of more than $US54,000 a tonne, Fat Prophets analyst Gavin Wendt said Allegiance looked to have a "low-cost, robust operation" despite the relatively modest ore grade.

"I think you might see more interest build in the stock as they start to approach production," he said.