- Eagle Mountain Mining (EM2) has received firm commitments for an $11 million financing to ramp-up work at its Oracle Ridge Copper Mine
- More than 31.4 million shares will be issued in two tranches to sophisticated and institutional investors at 35 cents each
- The proceeds will be used to continue diamond drilling, add new personnel to the company’s geology and management teams, and review further prospective landholdings in Arizona
- In addition to the financing, 11.3 million unlisted incentive options will be issued to certain directors, employees and contractors
- Eagle Mountain Mining is up 20 per cent to $0.42 per share
Eagle Mountain Mining (EM2) has received firm commitments for an $11 million financing to ramp-up work at its Oracle Ridge Copper Mine.
Under the terms of the offering, more than 31.4 million fully paid ordinary shares will be issued in two tranches to sophisticated and institutional investors at 35 cents each.
Just over 25.7 million shares will be issued in the first tranche, raising $9 million.
The second tranche will consist of roughly 5.7 million shares, which a company connected to Eagle Mountain’s Managing Director Charles Bass will purchase for $2 million, subject to shareholder approval.
The proceeds will be used to continue diamond drilling at Oracle Ridge, which aims to expand the resource size, improve the resource zone with a focus on higher-grade zones, develop both lateral and depth potential, and test other prospective targets close to the mine.
Eagle Mountain said it will also add new personnel to its geology and management teams in Tuscon and Perth and review — and potentially acquire — further prospective landholdings in Arizona.
“The placement was very well received with strong demand exceeding the funds ultimately being sought by the company by several times, despite being at no discount to the last traded price,” said Tim Mason, CEO of Eagle Mountain Mining.
“This is a testament to the quality of the Oracle Ridge Project and the potential for near-mine areas to host further mineralisation,” he added.
In addition to the financing, 11.3 million unlisted incentive options will be issued to certain directors, employees and contractors. The six million options issued to directors will be exercisable at 55 cents per share, while the 5.3 million options issued to employees and contractors will be exercisable at 52 cents per share until July 1, 2024.
Eagle Mountain Mining is up 20 per cent to $0.42 per share at 1:58 pm AEDT.