Eclipse Metals Ltd (ASX:EPM) has completed a well-supported placement to new investors raising around $513,000 before costs.
The placement will result in the issue of about 96 million new, fully paid ordinary shares in Eclipse, using the company’s available placement capacity under ASX Listing Rule 7.1.
The new shares will be issued at a price of 0.55 cents per new share, which represents a 15% discount to Eclipse’s 5-day trading Volume Weighted Average Price of 0.64 cents to May 7, 2020.
Funds from the placement will be directed to ‘gear up’ the company to commence exploration on the Devil’s Elbow Uranium-Gold-Palladium Project and for general working capital purposes.
Devil’s Elbow Project
The company recently identified 17 walk-up drill targets at its 100%-owned Devil’s Elbow project in Alligator Uranium Fields, Northern Territory.
Devil’s Elbow has already yielded extremely high-grade results from surface assays, trenching and drilling, including triuranium octoxide grades of 3.2%, 3.7%, 4.40% and 5.8% - with high-grade gold and palladium also encountered.
Eclipse is aiming for ground exploration and drilling to commence in the near-term.