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- Eagle Mountain Mining (EM2) raises $16 million via an institutional placement to advance exploration at its Oracle Ridge Copper Mine in Arizona
- The placement will issue around 33.5 million new shares at an issue price of 45 cents a share, a 6.2 per cent discount to the last closing price of shares and an 12.5 per cent discount to the five-day volume-weighted average price
- Eagle will use the capital to complete a further update to the MRE later in the year and drill test other prospective exploration targets that have been identified at Oracle Ridge
- EM2 shares are down 6.25 per cent, trading at 45 cents
Eagle Mountain Mining (EM2) has raised $16 million via an institutional placement to advance exploration at the company’s Oracle Ridge Copper Mine in Arizona.
The placement will issue around 33.5 million new shares at a price of 45 cents a share, a 6.2 per cent discount to the last closing price and an 12.5 per cent discount to the five-day volume-weighted average price.
There are two components to the placement, which comprises an unconditional placement to raise $15 million via approximately 33.3 million shares and a conditional placement to Mr Charles Bass who intends to subscribe for $1 million worth of shares.
Funds raised from the placement will go into expanding, upgrading and recommissioning the mines at Oracle Ridge, which CEO Tim Mason said is a “high-grade mineral [resource]”.
“As part of our development pathway, we are refurbishing the underground mine to dramatically improve drilling efficiency and allow for the potential development of an exploration drive which could later be used as an access for mining purposes.
“The combination of the strong outlook for the copper market, the competitive strengths of the Oracle Ridge project and ongoing exploration success positions the company with a solid base for growth in shareholder value.”
In early March, Eagle completed an updated JORC mineral resource estimate (MRE) which increased the contained copper by 36 per cent by adding 59 drill holes. Currently, the company is undertaking resource upgrade and expansion drilling with plans to further update the MRE later in the year.
The capital raised will also go into drill testing other prospective exploration targets that have been identified at Oracle Ridge, in particular at the OREX target which shows extensive out-cutting copper mineralisation.
EM2 shares were down 6.25 per cent, trading at 45 cents at market close.
