E2 Metals (ASX:E2M) raises $2.75M to speed-up drilling at Conserrat

• E2 Metals (E2M) has successfully completed a $2.75 million placement and will use the funds to speed-up drilling at its Conserrat gold and silver discovery
• Approximately 22 million shares were issued to sophisticated and professional investors at a price of 12.5 cents
• E2 Metals is now looking to open a share purchase plan to raise an additional $750,000
• Eligible shareholders will have the opportunity to purchase up to $30,000 worth of shares at a price of 12.5 cents each
• As well as going to the Conserrat gold and silver discovery, the money will also be used to strengthen E2 Metals’ balance sheet
• E2 Metals has ended the day 9.09 per cent in the red with shares trading for 15 cents each

E2 Metals (E2M) has successfully completed a $2.75 million placement and will use the funds to speed-up drilling at its Conserrat gold and silver discovery.

Approximately 22 million shares were issued to sophisticated and professional investors at a price of 12.5 cents each. This represents a 35 per cent discount to E2 Metals’ 15-day volume weighted average price of 19.1 cents.

This placement was strongly supported by existing shareholders with 85 per cent of the shares being allocated to them. The remaining shares were issued to new strategic shareholders.

Shares will settle on May 29 and be issued on June 3.

E2 Metals is now looking to open a share purchase plan to raise an additional $750,000.

Eligible shareholders will have the opportunity to purchase up to $30,000 worth of shares at a price of 12.5 cents each.

The share purchase plan will open on June 5 and close on June 26. They will then be issued on July 3 and can begin trading on the ASX on July 7.

The money raised from both the placement and share purchase plan will be used to provide funding to speed-up drilling at the Conserrat gold and silver discovery in Argentina, and strengthen E2 Metals’ balance sheet.

“The placement proceeds ensure the company is adequately funded with over $3.7 million cash before the share purchase plan is considered,” Managing Director Todd Williams commented.

“We believe that the Conserrat project has all the hallmarks of other multi-million-ounce gold and silver vein systems in the district, with recent exploration by the company returning multiple near surface discoveries including the recent high-grade Mia prospect,” he said.

“These funds help shield the company from the current market risk while providing the certainty to advance Conserrat through planned diamond and reverse circulation drill programs once COVID-19 restrictions are lifted,” he added.

E2 Metals has ended the day 9.09 per cent in the red with shares trading for 15 cents each in a $15.15 million market cap.