Special Report: Emmerson is in a strong position to advance five copper-gold projects in the Macquarie Arc – NSW’s new exploration hotspot – following a $4.5m cash injection.
Emmerson (ASX:ERM) has secured commitments to raise up to $3.5m in an over-subscribed placement to institutional and sophisticated investors.
This includes $2m from new strategic investor Palisades Goldcorp, which will provide visibility to the important North American market for Emmerson.
The management at Palisades, Canada’s new resources-focused merchant bank, has a demonstrated track record of making money and is backed by many of the industry’s most notable financiers.
Palisades is positioning itself with significant stakes in undervalued companies and assets with the goal of generating superior returns, Emmerson says.
In addition to the placement, a share purchase plan will be undertaken to raise up to a further $1m.
Both the placement and SPP price are at a very small 4.8 per cent discount to the last closing price of Emmerson shares of 10.5c per share.
This new funding places Emmerson in a strong position to advance its NSW projects to the next phase while momentum builds in the emerging gold royalty business at Tennant Creek.
Fast tracking discovery in the Macquarie Arc
The cash raised will primarily be directed towards accelerating five early-stage gold and copper-gold porphyry projects in NSW.
The highly prospective Macquarie Arc hosts +80 million ounces of gold and +13 million tonnes of copper, but these resources are mostly in areas of ‘outcrop’ or limited cover.
Emmerson’s exploration projects contain many attributes of the large known deposits within the Macquarie Arc, but remain underexplored due to historical impediments like overlying cover (farmlands and younger rocks).
The main focus will be further exploration and drill testing across some exciting new targets at Kadungle, Kiola, and Wellington, plus first pass drilling of the historic Sebastopol Goldfield in NSW – the subject of a recently announced Strategic Alliance with Longreach Mineral Exploration.
Emmerson managing director Rob Bills says the strongly supported placement reflects investor appetite for Emmerson’s strategy and high-quality gold and copper-gold portfolio.
“It demonstrates Emmerson’s ability to access strong investor support on the back of prudent management of capital along with a solid track record of a well credentialed explorer,” he says.
“We believe Emmerson is well positioned in having significant ground positions across one of Australia’s highest-grade gold provinces at Tennant Creek and its five copper-gold projects in the Macquarie Arc – the new exploration hotspot of NSW.”
This story was developed in collaboration with Emmerson, a Stockhead advertiser at the time of publishing.
This story does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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Barry Stroman was a reporter for Zerg Watch, before becoming the lead editor. Barry has previously worked for Wired, MacWorld, PCWorld, and VentureBeat covering countless stories concerning all things related to tech and science. Barry studied at NYU.