- Encounter Resources (ENR) taps investors for $4 million to advance copper, lithium and rare earth exploration across its Australian projects
- The company plans to place 33.3 million shares to private investors at 12 cents per share — a discount of around 14 per cent to its last closing price
- Subject to shareholder approval, directors of the company plan to subscribe for 2.5 million shares at the same price to raise a further $300,000
- The capital raise will help fund exploration work at ENR’s Sandover project in the Northern Territory and at the Aileron and Lamil projects in Western Australia
- Shares in Encounter Resources are down 6.9 per cent to 13.5 cents at 1:18 pm AEST
Encounter Resources (ENR) has tapped investors for $4 million to advance copper, lithium and rare earth exploration across its Australian projects.
Emerging from a trading halt, the company today revealed it received firm commitments from sophisticated, professional and experienced investors for 33.3 million shares at 12 cents per share — a discount of around 14 per cent to its last closing price.
Additionally, directors of the company have subscribed for 2.5 million shares at the same price to raise a further $300,000.
The director placement is subject to shareholder approval, which will be sought at the company’s AGM on November 29.
Managing Director Will Robinson said the placement would allow the company to accelerate its planned exploration activities across its wholly-owned projects.
In particular, the funds are set to go towards copper and lithium exploration at ENR’s Sandover project in the Northern Territory, where bornite was identified in historical drill core.
Encounter is also looking to continue testing the potential for iron oxide copper gold ore and rare earths at its Aileron project in the West Arunta region of Western Australia.
Also in WA, the company is exploring for copper and gold at its Lamil project.
Canaccord Genuity and Chieftain Securities acted as Joint Lead Managers to the placement and will receive two million options exercisable three years from the issue date.
Shares in Encounter Resources were down 6.9 per cent to 13.5 cents at 1:18 pm AEST.