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Eagle Mountain Mining (ASX:EM2) taps institutional investors for $16m

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ASX:EM2      MCAP $4.006M
28 September 2021 14:15 (AEDT)

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Eagle Mountain Mining (EM2) is set to raise $16 million from institutional investors to fund drilling activities at the company’s Oracle Ridge Copper Mine in the US state of Arizona.

The company offered up 24,615,385 fully paid ordinary shares to institutional investor at $0.65 apiece, representing a 9.7 per cent discount on the stock’s last closing price.

Proceeds from the capital raise are set to go towards a diamond drilling program at the Oracle Ridge Copper Mine, which aims to expand the project’s current resource base and explore EM2’s “high priority” targets.

The company also hinted the funds may underpin a potential landholding acquisition in Arizona, but did not disclose any further details.

Shares are set to be issued under two tranches, with Managing Director Mr Charles Bass picking up the balance of the second tranche to the tune of $1 million worth of shares.

Eagle Mountain Mining Chief Executive Officer Tim Mason said he was delighted with the level of support received from institutional investors.

“In particular, I wish to thank our Managing Director, Charlie Bass, who continues to financially support the Company, testament to his ongoing confidence in the Oracle Ridge Project,” Mr Mason said.

“The Placement was very well supported with demand significantly exceeding the funds being sought.”

Canaccord Genuity and PAC Partners Securities Pty Ltd acted as Joint Lead
Managers to the placement.

Just before market close Eagle Mountain Mining shares were down 1.39 per cent to trade at 71 cents.

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