Emmerson Resources Limited (ASX:ERM) has secured commitments to raise circa $2 million via a placement of shares to institutional and sophisticated investors, at $0.088 per share.
The raising has seen a number of North American and European institutions join the company’s register.
Rob Bills, managing director and chief executive officer, commented: “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.”
Use of funds
The new funds will fast track systematic exploration across Emmerson’s five projects at Fifield, Parks, Temora/Sebastopol, Wellington and Kiola.
Specifically, the company will drill some new targets at its Kadungle project where a recent induced polarisation geophysical survey has revealed new untested targets.
The Kadungle project sits to the east of the company’s large Fifield exploration lease and to the west of Rimfire Pacific Mining’s (ASX:RIM) Sopresa discovery (7.9 million ounces silver and 125,000 ounces gold).
The company’s near term focus is on epithermal gold-silver within the large porphyry copper-gold systems across its New South Wales projects.
Strategy
The company is presently monetising a pipeline of small ultra high-grade gold projects at Tennant Creek in the Northern Territory.
Emmerson’s strategy for its New South Wales projects is to follow a similar model to what has led to success at its Northern Territory gold operations.
The company remains well funded with a potential for additional risk free cash from small mines.
It is envisaged that Emmerson will seek suitable joint venture partners on some New South Wales projects.