Eagle Mountain raising up to $6m to fund Oracle Ridge drilling
Eagle Mountain has received strong support from new and existing institutional investors who have firmly committed to a $5m placement.
The placement of about 30.3 million shares priced at 16.5c each, which represents a 12.8% discount to the five-day volume weighted average process, will be followed by a share purchase plan to raise up to a further $1m.
As part of the placement, managing director Charles Bass intends to subscribe for $2m worth of shares, though this is subject to shareholder approval.
Meanwhile, the SPP offers all existing shareholders the opportunity to apply for up to $30,000 in new shares.
Eagle Mountain (ASX:EM2) intends to use the proceeds from the placement and SPP to drill various prospective targets around its flagship Oracle Ridge project in Arizona and to start underground drilling with the aim of further upgrading resources.
“We are very pleased with the strong support for the placement which will be used to continue to advance our Oracle Ridge project by testing prospective near-mine targets and upgrading the existing mineral resource,” chief executive officer Tim Mason said.
“We are close to completing the initial refurbishment of the underground mine to dramatically improve drilling efficiency and an underground drill is planned to mobilise in early December 2022.”
Oracle Ridge is a previously producing underground mine with a current Resource of 16.5Mt at 1.45% copper, 15.1 grams per tonne (g/t) silver and 0.19g/t gold.
Drilling by Eagle Mountain is focused on increasing resources with recent work returning some encouraging copper hits including a thick intersection above 2% copper in upgrade drilling at the emerging Talon ore body.
Additionally, rock chips taken from historical mines have outlined the broader potential of the Oracle Ridge project.
This article was developed in collaboration with Eagle Mountain, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.