European Metals Holdings Limited has conditionally raised A$2.6 million from its largest shareholder, Rare Earth Minerals via the issue of 5 million ordinary shares at A$0.52 per CDI.
The placing price is the same as the closing price of the company's securities on ASX on Friday 30 September 2016 and represents a premium over both the 5 and 10 day volume weighted average price of the Company's securities.
The placement is subject to shareholder approval which will be sought at the company's annual general meeting later this month.
In addition, REM has notified the Company of its intention to exercise 2 million unlisted options which were otherwise due to expire on 19 October 2016.
The option exercise price is A$0.2 and on exercise will result in a further A$400,000 being raised by the Company. The issuance of the placement CDI's and the option conversion will take REM's relevant interest in European Metals to 20.92%.