How Is Empire Resources’ Investment In NTM Gold Placed Amid Market Volatility?

Summary

  • Empire Resources is a gold and copper focussed exploration company with two highly prolific projects in Australia.
  • In July 2019, Empire Resources had gained 6.76% interest in NTM Gold Limited, which is another gold exploration company with exploration activities in the Eastern Goldfields region.
  • At the end of June quarter, ERL’s investment in NTM was valued at $3,671,097, which has grown from $1,499,875 at the time of investment in 2019.
  • ERL received commitments for $1.3 million before costs through a placement to finance exploration drilling at Yuinmery Project as well as Penny’s Gold Project and for meeting the working capital requirements.

Off late, there has been significant volatility and uncertainty surrounding the financial markets globally. Investors have been compelled to rethink their investment strategy and revise their investment portfolio. However, the uncertain times have not had an impact with similar gravity over every asset.

Let us find out at how the investment of a mineral exploration and development company is placed in these highly uncertain times.

Yuinmery Copper-Gold Project and Penny’s Gold Project of Au-Cu centred exploration and development company, Empire Resources Limited (ASX:ERL) are believed to be a significant opportunity as they hold several exploration targets with outstanding prospects.

Interesting Read: Skimming Through Empire Resources’ Progress Since January 2020, Well Funded For Exploration Drilling Across Project Portfolio

The Company has been undertaking activities at these projects and has received significant results from these endeavours. These include the highly prospective gold targets at Penny’s Gold Project and highly encouraging Cu-Ni-PGM results returned from drilling at the Yuinmery Copper-Gold Project. These discoveries offer significant growth opportunity for ERL amid the atmosphere of all-time high gold price.

Apart from its two prolific landholdings, ERL also has 6.76% interest in a gold exploration Company “NTM Gold Ltd”.

ERL’s Investment Escalates Thick and Fast

The major prospective investment of ERL is its holding in NTM Gold Limited (ASX:NTM), which has proven lucrative as the investment worth $1,499,875 made in July 2019 has increased multiple folds till date. At the time of investment, ERL invested at a per-share price of $0.0325, which is presently trading at $ 0.088 as on 10 September 2020.

NTM is an emerging gold explorer actively engaged in the Eastern Goldfields of Western Australia and aims to unlock the potential within the prospective gold corridor through aggressive exploration.

Detailed Discussion at: Empire Resources Cracking Crust at Yuinmery Project With Excellent Exploration Results, Secures Funding Through Placement

Off late, NTM has intercepted high-grade mineralisation at its Hub deposit, which indicates favourable positive ramifications for the deposit. Moreover, NTM fully owns the Redcliffe Gold Project, which is a key development opportunity for NTM with recognised resources proximal to existing infrastructure and mines.

NTM has also undertaken geological and structural interpretation studies that have indicated the potential for significant fresh discoveries at the Project area. Furthermore, a large number of prospective targets have been identified, where NTM looks forward to aggressively undertake testing to provide a notable lift to the resource base.

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

Over the year, beginning from July 2019 to 30 June 2020, the value of ERL’s investment in NTM has grown from $1,499,875 (45,888,708 shares at $0.0325 per-share) to $3,671,097 (at $0.080).

NTM stock has a market capitalisation of $ 58.81 million and has delivered 975% returns to its shareholders over the past five years till 08 September 2020.

Furthermore, ERL seeks to identify value accretive investment opportunities that accompany the development objectives of ERL and extracting value from direct exploration in its present project portfolio.

Interesting Read: Empire Resources Limited Calls the Tune in Its Significant Landholdings, A Walk Through Its Project Portfolio

In early August 2020, ERL received commitments to raise $1.3 million before costs through a placement to finance exploration drilling at both its projects and for meeting the working capital requirements. Under the placement, ERL had plans to issue around 108 million New Shares at a per share issue price of A$0.012, ranking equally with its existing fully paid ordinary shares.

ERL share price remained unchanged at $ 0.013 on 10 September 2020 with a market capitalisation of $ 11.81 million. The

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

Please Note: All financials are in AUD, unless specified.

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