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Empire Resources (ASX:ERL) enters trading halt ahead of capital raise

The Market Online Deal Room
ASX:ERL      MCAP $5.935M
03 August 2020 10:00 (AEDT)

Exploration company Empire Resources (ERL) has entered a trading halt as it gears up for a capital raise announcement.

The trading halt will remain in place until August 5 at the latest, or it’ll lift when the company announces the full details of the capital raise.

Recently, Empire ended the June quarter with $598,000 in the bank, enough cash to keep it going for almost two more quarters if spending levels remained the same.

The company burnt $302,000 on operating costs during the same period, with $189,000 of that going towards exploration and evaluation work.

Empire said in its quarterly cash flow report it doesn’t expect to rack up such a large amount of exploration expenditure in the next quarter.

Instead, the company is focused on the “encouraging” results from its recent drilling campaign at its Yuinmery Copper-Gold Project.

Seven reverse circulation holes were drilled at the project, testing the existing mineralisation in Smith Well and YT01 prospects.

The results showed the drilling intercepted copper-nickel mineralisation at depth and down plunge in the north-east of Smith Well.

While drilling at YT01 intercepted a broad zone of copper, nickel and platinum group elements, including 20 metres at 0.39 per cent copper, 0.11 per cent nickel, 0.02 per cent cobalt, 0.21 grams per tonne palladium and 0.07 grams per tonne platinum.

Before today’s trading halt, shares in Empire were trading for 1.4 cents per share on July 31.

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