- Elmore (ELE) raises $2.5 million through the issue of a converting note to fund the development of its Northcote project in Far North Queensland
- Pending shareholder approval, the note will covert to ordinary shares with 62.5 million issued at four cents each
- Minimum investment was $25,000 and Merrill Lynch Australia Nominees subscribed for the largest amount of $1 million
- ELE has been contracted to provide a turn-key processing solution for gold ore mined at the project and says the capital will fund project design and licensing
- Shares were trading 25 per cent lower at 3.6 cents at market close
Elmore (ELE) has raised $2.5 million through the issue of a converting note to fund the development of its Northcote project in Far North Queensland.
The minerals processing company has been contracted by Territory Minerals to provide a turn-key processing solution for gold ore mined at the project.
More than 40 strike kilometres of mineralised structures have been found to exist within the project area, according to Elmore.
To fund the next stage of development at Northcote, including project design and licensing, the company issued a converting note to a number of existing funds and sophisticated investors.
Minimum investment was $25,000 and Merrill Lynch Australia Nominees subscribed for the largest amount of $1 million followed by TIGA Trading which applied for $300,000.
Shareholder approval will be sought to convert the note shares, and if approved the note
will automatically convert to 62.5 million shares to be issued at four cents each.
Conditions of the raise require a five per cent establishment fee as well as three months interest to be paid upfront in cash and a 20 per cent per annum interest rate.
The raise was led by Shaw and Partners who ran a book build process vetted by Elmore.
“I’d like to thank those that participated in the raise and apologise to those that expressed interest, but whom we were unable to allocate a proportion of the raise to,” Elmore Managing Director David Mendelawitz said.
“The funds will give us the confidence to dive into the next stage of development of a project that we are confident has lots of potential for all involved.”
Company shares were trading 25 per cent lower at 3.6 cents at market close.