Empire Resources raising up to $13.2 million for Yuinmery copper gold exploration

Empire Resources (ASX: ERL) could raise up to A$13.2 million through a newly announced Share Purchase Plan, to supplement working capital and continue exploration activities.

Eligible shareholders will be able to purchase up to a maximum of $15,000 worth of shares at an issue price of A$0.05, about 300,000 shares, without brokerage fees or other charges.

Empire’s directors have indicated their intention to participate in all or some of their entitlement in the Share Purchase Plan.

The offer closes on February 8, 2012.

Some of the funds raised in the Share Purchase Plan will go towards exploration activities at the company’s Yuinmery Copper-Gold Project, 80 kilometres southwest of Sandstone in Western Australia.

In December Empire announced intersections from two reverse circulation drill holes at Zone A, within Yuinmery:

- 10 metres at 1.8% copper and 0.87 grams per tonne (g/t) gold from 222 metres, including 6 metres at 2.6% copper and 1.05g/t gold;
- 12 metres at 1.8% copper and 0.46g/t gold from 240 metres, including 7 metres at 2.2% copper and 0.56g/t gold.

Mineralisation remains open at depth.

The drill holes are part of ongoing reverse circulation and diamond drilling programs that are testing a number of volcanogenic massive sulphide targets at the project.

Between results from multiple prospects in 2011 and the latest drilling results, Empire looks to be on the cusp of a major mineralised system at Yuinmery.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/24200/empire-resources-raising-up-to-132-million-for-yuinmery-copper-gold-exploration-24200.html