- Empire Resources has repaid the loan worth AU$1.5 million borrowed from Michael Ruane, ERL’s Non-Executive Chairman and major shareholder.
- ERL utilised proceeds from the sale of its shares held in DCN to repay the loan facility in full.
- ERL remains suitably financed to continue executing the exploration and corporate objectives.
In the latest key development, Empire Resources Limited (ASX:ERL) is happy to announce that it has successfully repaid the complete AU$1.5 million loan facility and all outstanding interest.
The loan of AU$1.5 million was provided by ERL’s Non-Executive Chairman and major shareholder, Michael Ruane in July 2019. Because of the loan facility, ERL was able to take placement of 46.15 million fully paid ordinary shares in fellow gold explorer NTM Gold Limited (ASX:NTM) at AU$0.0325 per share.
Funds to repay the loan
The repayment started during the June quarter when ERL had sold 2,715,000 shares in Dacian Gold Limited (ASX:DCN) at an average price of AU$0.379 per share. The total proceeds from the sale amounted to AU$1,026,601, which were utilised towards the settlement of the loan facility.
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NTM and DCN Merger
Another major step taken by ERL was, NTM to merge with DCN in November 2020, under which NTM shareholders received 1 DCN share for every 2.7 NTM shares held.
The merger concluded in March 2021, with a share settlement taking place from 17 March 2021, and ERL was issued 16,995,818 DCN shares in the settlement.
After completing the merger, ERL sold a total of 12,995,818 shares for net proceeds of AU$3,510,693, thereby allowing ERL to repay the loan facility in full and continue exploration across its complete exploration portfolio.
ERL now holds around 4,000,000 shares in DCN and held around AU$1.11 million in cash at hand. The Company’s current holding in DCN coupled with the cash at hand indicates a strong financial position for ERL to move forward with the execution of its exploration and corporate objectives.
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Given its strong financial background, ERL might look to engage in an aggressive exploration program across its land assets. Moreover, the Company might also consider engaging in acquiring any exploration and developmental asset that comes up. Thus, all eyes remain on ERL’s next move to attain its developmental objectives.
ERL stock was noted at AU$0.012 on 21 September 2021.