Empire Resources (ASX: ERL) has raised up to $1.23 million through a placement of 15 million shares at $0.082 per share to fund further drilling at the Yuinmery Copper/Gold Project in Western Australia.
Bell Potter Securities Limited was manager to the capital raising and funds raised will also be used for working capital purposes. The voluntary suspension request has now been lifted to allow trading to recommence.
The new shares will rank equally with existing Empire ordinary shares quoted on the ASX. Completion of the placement and receipt of the funds will take place over the next few days.
Earlier in September the company announced the hit of 4 metres at 4.68% copper and 0.5g/t gold, with 7 metres at 3.17% copper and 0.47g/t gold, at the Yuinmery project.
The copper intersection forms part of a wide zone of disseminated sulphide mineralisation from 173 metres, with the true width estimated to be at least 80% of the drill intersection.
Another very important factor for the A Zone prospect is the strategic location, positioned just 1.3 kilometres north of the company's Just Desserts prospect.
Just Desserts already hosts an Indicated and Inferred JORC Resource of 1,070,000 tonnes at 1.82% copper and 0.78g/t gold.
Yuinmery is not a stranded deposit and the project has many positive aspects including being close to infrastructure and having good access. Yuinmery is maturing rapidly and has a near term development horizon.
It contains multi metal resources, dominated by copper and gold, and has a concentrated footprint of metals; that is high metal value in low volume.
With the emerging consistently high grades at the project at a time of sustained high global pricing for these commodities due to supply demand pressures, Yuinmery is certainly well placed.
Under the radar until now, Empire Resources is building the case for a standalone development at Yuinmery given high grade gold results to date.
Similar to adjacent mines at Golden Grove and at Leonora, Empire could produce a low volume high value concentrate, which would be trucked to Geraldton, and sold FOB to any of the markets world-wide.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/19763/empire-resources-raises-a123m-for-continued-drilling-at-yuinmery-coppergold-project-19763.html
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