Placement to Raise $2 Million to Advance NSW Projects
Under the Placement, Emmerson will issue approximately 21.6 million fully paid ordinary shares ("Shares") at an issue price of $0.09 each. For every two Shares issued to participants under the Placement, participants will also be issued 1 free attaching unlisted option with an exercise price of $0.135 each, exercisable on or before 30 September 2020 ("Options").
The raising has seen a number of North American and European institutions to join the register.
The issue price represents a 2.3% premium to the last close (4 October 2017) of $0.088 per share and a 1.3% premium to the 15-Day VWAP of $0.0889 per share.
The Lead Manager of the Placement was Argonaut Securities Pty Ltd.
New Shares and Options issued under the Placement will be issued pursuant to the Company's existing placement capacity under ASX Listing Rule 7.1. Accordingly, no shareholder approval is required in connection with the Placement. Settlement of the Placement is expected to occur on or around 18 October 2017. The new Shares will rank equally with existing Emmerson Shares. The Options will be unlisted and issued on standard terms and conditions.
The proceeds raised under the Placement will be used to accelerate exploration over Emmerson's five NSW projects and for general working capital. Specifically, to drill some exciting new targets at our Kadungle project where a recent Induced Polarisation geophysical survey has revealed new untested targets. Based on the historical drilling and geology, these likely represent sulphides associated with a large, underlying porphyry copper-gold and associated, shallow, epithermal gold mineralisation. The funds will fast track systematic exploration across Emmerson's other five projects at Fifield, Parks, Temora/Sebastopol, Wellington and Kiola.
Commenting on the placement, Mr Rob Bills, Emmerson's Managing Director & CEO said: "We are very pleased with the high level of interest, allowing the raising to be done at a premium to market. The raising follows on from the high investor enthusiasm in Emmerson's NSW projects, as early results from Kadungle vindicate our targeting methodology and point to the calibre of these projects. This new funding places Emmerson in a strong position to advance our NSW projects to the next phase. We welcome the new investors to the register and thank existing shareholders for their continued support. This placement continues to demonstrate Emmerson's ability to access strong investor support on the back of a good track record as a well credentialed explorer."
About Emmerson Resources Limited
Emmerson Resources Limited (ASX:ERM) (FRA:42E) recently commenced exploration on new gold-copper projects in NSW, identified (with our strategic alliance partner Kenex Limited) from the application of 2D and 3D predictive targeting models – aimed at increasing the probability of discovery. The highly prospective Macquarie Arc in NSW hosts >80Mozs gold and >13Mt copper with these resources heavily weighted to areas of outcrop or limited cover. Emmerson's five exploration projects contain many attributes of the known deposits within the Macquarie Arc but remain under explored due to historical impediments, including an overlying cover (plus farmlands) and a lack of exploration focus. Kadungle is a JV with Aurelia Metals covering 43km2 adjacent to Emmerson's Fifield project.
In addition, Emmerson is exploring the Tennant Creek Mineral Field (TCMF), one of Australia's highest-grade gold and copper fields producing over 5.5 Mozs of gold and 470,000 tonnes of copper from deposits including Warrego, White Devil, Orlando, Gecko, Chariot and Golden Forty. These high-grade deposits are highly valuable exploration targets, and to date discoveries include high-grade gold at Edna Beryl and Mauretania, plus copper-gold at Goanna and Monitor. These are the first discoveries in the TCMF for over a decade.
Emmerson Resources Limited