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- Minerals processing company Elmore (ELE) gets firm commitments to raise $4.35 million through a placement
- Each share will be issued at three cents which represents an 11.76 per cent discount to the last closing price on August 11
- The funds will be used to purchase and move plant and equipment to process copper and cobalt at the Peko project in the Northern Territory
- Reconstruction and commissioning activities will be funded from cashflows from magnetite sales and the work is expected to take between six to eight months
- Company shares end the day 8.82 per cent in the red to close at 3.1 cents
Elmore (ELE) has received firm commitments to raise $4.35 million through a placement to sophisticated and professional investors.
Each share will be issued at three cents which represents an 11.76 per cent discount to the last closing price on August 11.
The company expects the placement shares to settle on August 30 and the new shares will commence trading on the ASX the following day.
Additionally, Elmore will seek shareholder approval for Non-Executive Director Andy Haslam to subscribe for up to $25,000 in shares on the same terms as the placement.
Elmore will use the money raised to purchase and move plant and equipment it secured to process copper and cobalt at the Peko project in the Northern Territory.
Specifically, the company recently identified and secured a plant in WA that it believes matches the process and scale required for Peko. The WA-based plant was recently put into care and maintenance after working as a pilot plant recovering other commodities.
Elmore is allocating $1.5 million of the placement funds to purchase and move the plant and plans to fund reconstruction and commissioning from cashflows from magnetite sales.
The capital raise will also help fund bonds over sea containers, spare parts for the process plant, a flotation and regrind circuit on Peko plant, costs associated with the progressing of the Territory Minerals project development, capital raise costs and general working capital.
This work is expected to take around six to eight months to complete.
Managing Director David Mendelawitz said he was pleased with the strong support the placement received.
“These funds significantly strengthen our balance sheet and will help transform the company from a single to a multi commodity producer,” he said.
“With the completion of the first revenue milestone last week, we now look forward to hitting the full targeted rate of production to 350,000 tonnes per annum as well as our focus on commencing copper and cobalt, followed by gold, production.”
Company shares ended the day 8.82 per cent in the red to close at 3.1 cents.
