Empire Metals PLC on Monday announced a £3 million placing, saying the proceeds would allow it to capitalise on the recent progress it simultaneously announced at its Western Australian asset.
Empire Metals is a London-based minerals explorer and developer with copper, titanium and gold interests in Australia and Austria.
Empire said it raised £3 million through a placing of 27.3 million new shares at 11 pence each to TransOceanic Minerals, a Saudi Arabian strategic investor focused on the natural resource sector. Empire has also issued warrants over 224,886 shares exercisable at 11p each within two years from the date of grant in relation to the placing.
Empire expects the new shares to be admitted to trading on the AIM market of the London Stock Exchange on January 26.
Commenting on the fundraise, Managing Director Shaun Bunn said: ‘We are extremely pleased to welcome TransOceanic Minerals, a group focused on investments in the natural resource sector as a shareholder of the company...This is an important milestone for the company as this strategic partnership not only recognises the global significance of our Pitfield project but with the on-going support of TransOceanic Minerals and potential future partnerships in Saudi Arabia, the company will have the capacity to expand project development and accelerate value creation for all shareholders.’
One of Empire Metals’ current priorities is developing the Pitfield licence in Western Australia. In November, drilling produced high grade results, with diamond drillholes intersecting thick, bedded intervals of high-grade titanium mineralisation. Similar promising results were reported in December.
On Monday, Empire Metals said proceeds from the placing will be used for expand reverse circulation drilling and conduct additional diamond core drilling at the project.
In a separate announcement on Monday, the company said results from the Pitfield RC programme revealed ‘extensive, shallow high-grade bedded titanium mineralisation’. The 40-drillhole programme, completed in December 2023, confirmed titanium dioxide ‘present in every metre, starting from or near surface, in all holes drilled’.
It said the results corroborated the diamond drillhole intersections drilled in the fourth quarter, confirming ‘an abundance of thick, strongly mineralised sandstone beds that come to surface’.
The second, fully funded phase is due to commence in February, with a third programme scheduled for later in the quarter.
Empire said that the proceeds will also go towards further mineralogical and metallurgical studies, which will focus on the recovery of high-value titanium dioxide ahead of entering the design phase for a test plant in 2025.
The latest results, Bunn explained, ‘verify our geological models...and provide a high degree of confidence in our ability to target higher grade mineralisation elsewhere within this giant mineral system’.
Shares in Empire Metals were up 14% at 12.13 pence each in London on Monday afternoon.
Copyright 2024 Alliance News Ltd. All Rights Reserved.
