Emu (ASX:EMU) eyes $2m for exploration work

• Australia-based resources company Emu (EMU) agrees to undertake a placement and raise $2 million
• The funds will be raised through the issue of around 83.3 million fully-paid ordinary shares to sophisticated and professional investors at 2.5 cents each
• Participants will also be issued two free options for every five shares applied for, exercisable at 7.5 cents with expiry on March 15, 2023
• Emu will use the money to aid with continued exploration activities, drilling activities, acquire further projects and for working capital
• Shares in Emu are steady on the market and have been trading at 2.7 cents since October 29

Australia-based resources company Emu (EMU) has agreed to undertake a placement to raise $2 million.

The company entered a trading halt on November 3 but did not disclose how much it intended to raise or what it would use the funds for.

The funds will be raised through the issue of around 83.3 million fully-paid ordinary shares to sophisticated and professional investors at 2.5 cents each.

Participants will also be issued two free options for every five shares applied for, exercisable at 7.5 cents with expiry on March 15, 2023.

Emu will use the money to support continued exploration activities, drilling activities, acquire further projects and fund working capital.

Phase two drilling is advancing at the company’s Gnows Next Project in Western Australia.

Drilling has been designed to test for extensions to the gold mineralisation below previous results as well as explore the potential of gold mineralsation between the northern and southern shoots.

A total of 10 holes have been drilled so far with best results including two metres at 12.62 grams per tonne (g/t) of gold from 121 metres, including one metre at 18.57 g/t gold from 121 metres.

Approximately 4000 metres of the planned 6500 metres have been drilled and further results are pending.

Shares in Emu were steady on the market and have been trading at 2.7 cents since October 29.