Empire Resources to Raise A$1.3 Million For Exploration Drilling Across Portfolio; Finalises Strongly Supported Placement

  • Aug 05, 2020 AEST
  • Team Kalkine
Empire Resources to Raise A$1.3 Million For Exploration Drilling Across Portfolio; Finalises Strongly Supported Placement


  • Empire Resources Limited has successfully completed a book-building process for raising A$1.3M.
  • The placement was strongly supported by the investors and indicated the excellent potential of ERL’s portfolio of prospective exploration projects.
  • ERL looks forward to utilising funds to continue exploration at the Company's Yuinmery Project and at its highly prospective Penny’s Gold Project near Kalgoorlie.
  • Over the years, ERL’s investment in NTM Gold Limited has grown multi-folds, and ERL’s cash on hand at June quarter-end was A$598,000.

Mineral exploration and resource investment company, Empire Resources Ltd (ASX:ERL) has achieved another milestone in its strategy towards the advancement of its project portfolio.

Off late, ERL has completed bookbuild and secured commitments from investors in Australia to raise proceeds of A$1.3 million before costs. For raising these gross proceeds, ERL will issue around 108 million New Shares to investors at an issue price of A$0.012 per share. Placement is being managed by Panthea Capital Pty Ltd, which will receive a fee of 5% of the funds raised for its services.

Related: Empire Resources Undergoes Trading Halt Pending Capital Raising Announcement

The issue price of A$0.012 indicates:

  • A 14% discount to Empire’s last closing price of A$0.014 per share on 31 July 2020 and
  • A 12% discount to the 10-day volume-weighted average price of A$0.0136 per share

New Shares issued under the capital raising (108 million New Shares) shall be placed within ERL’s 15% placement capacity under ASX Listing Rule 7.1 and are to be issued without disclosure to sophisticated and professional investors pursuant to s708 of Corporations Act 2001.

Moreover, the share placement is free from any shareholder approval and is anticipated to be finalized with the new shares issued on or about 7 August 2020.

Importantly, the new shares issued under the placement shall rank equally with ERL’s current fully paid ordinary shares.

Funds to be Utilised For Exploration Drilling Across Projects

Funds raised from the placement shall be utilised to finance exploration drilling at its Yuinmery Project where encouraging Cu-Ni-PGM results were returned recently; for drilling at its highly prospective, the Penny’s Gold Project near Kalgoorlie; and for meeting working capital requirements.

Lately, ERL has again delivered excellent exploration results with another two RC drill programs and a downhole geophysics survey completed for the Yuinmery Project.

Did you Read: Empire Resources Unveils Encouraging DHEM Responses & Broad Sulphide Mineralisation at Yuinmery

Moreover, disseminated sulphide mineralisation at depth has been revealed through drilling at Smith Well, while the potential for new discoveries was highlighted through drilling at the newly identified YT01 prospect.

ERL’s progressive exploration activities across its project over time have continued to add value to its projects. Simultaneously, ERL’s investment interests continue to mature and offer the potential for significant, non-dilutive revenue into 2020.

Detailed Discussion at: Empire Resources Reports Significant Results from Drilling Campaigns, Stock Zooms by ~7%

ERL’s Investment in NTM Grows Multifolds

Other major investment of ERL is its holding in NTM Gold Limited (ASX:NTM), indicating a 6.76% interest. In July 2019, ERL acquired the share in NTM at A$0.0325 per share for A$1,499,875 invested. This investment of ERL in NTM has grown to A$0.080 at the end of the quarter, valuing the holding at A$3,671,097.

Moreover, ERL’s cash and cash equivalents stood at A$598,000 at the end of the June 2020 quarter.

ERL closed at A$0.015, up by 7.143%, with a market capitalisation of A$11.2 million on 5 August 2020. During the last six months till 31 July 2020, ERL stock has increased by 75%.


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