- Emmerson Resources (ERM) opens share purchase plan (SPP) to raise $1.5 million after securing commitments to raise $5 million via institutional placement
- Eligible shareholders will be able to acquire up to $30,000 of new shares at an issue price of 1.15 cents under the SPP
- The proceeds raised under the placement and SPP will accelerate exploration in the copper and gold hotspots of Tennant Creek in Northern Territory and the Macquarie Arc in New South Wales
- The SPP closing date is May 16 with the results announcement set on May 23
- ERM shares are down 10.7 per cent, trading at 12.5 cents
Emmerson Resources (ERM) has opened its share purchase plan (SPP) to raise an additional $1.5 million after securing commitments to raise $5 million via an institutional placement.
Eligible shareholders will be able to acquire up to $30,000 of new shares at an issue price of 11.5 cents under the SPP.
The issue price represents an 11.4 per cent discount to the 30-day volume weighted average price (VWAP) to April 11.
Approximately 43 million shares were issued under the placement at the same issue price as the SPP.
The proceeds raised under the Placement and SPP will be directed to accelerating exploration in two of Australia’s foremost copper and gold hotspots of Tennant Creek in Northern Territory and the Macquarie Arc in New South Wales.
Managing Director Rob Bills said the funding will put the company in “a strong financial position”.
“We believe Emmerson is well positioned in having significant ground positions across some of Australia’s foremost exploration hotspots with Tennant Creek being one of Australia’s highest-grade gold provinces and the Macquarie Arc in NSW, home of some of the largest copper-gold projects,” he said.
“The strongly supported placement reflects investor appetite for Emmerson’s high-quality portfolio of copper, gold and cobalt opportunities and removes any future uncertainty around funding for our planned work.”
Emmerson has also agreed to issue five million unlisted options each to Bell Potter and Euroz Hartley, which are joint lead managers to the placement.
The SPP closing date is set on May 16 with the results announcement on May 23.
ERM shares were down 10.7 per cent, trading at 12.5 cents as of 3:49 pm AEST.