Empire Metals completes acquisition of 75% in Eclipse Gold Project
(EEE ) confirmed that it has now completed its acquisition of a 75% interest in the Eclipse Gold Project which is located 55km north-east of Kalgoorlie in Western Australia.
The exploration and resource development company said it has now received the receipt of Ministerial Consent for the transfer of title, the final condition of closing on the acquisition.
The consideration paid consists of UD$1m (that’s around £0.55m) in both cash and shares - AUD$0.5m (£0.27m) settled via the issue of 7,095,510 new ordinary shares of no-par value at a price of 3.91p as well as 7,095,510 warrants exercisable at 4.70p for two years.
Director of Empire Metals, Mike Struthers, said, “The results to date have been very encouraging and we believe this acquisition will create shareholder value as we continue to assess the potential economic mineralisation and a profitable open pit operation."
Empire announced a £2 million raise in November 2020, alongside which the Group also outlined its intention to advance its acquisition in Eclipse. It said the proceeds would help it expedite this process and be used to complete an ongoing work programme at the Project.
The Company said it had received encouraging support from new and existing shareholders in completing the placing which it said was an endorsement of its confidence in the potential for significant high-grade gold resource development at the Eclipse Gold Project.
Shares in Empire Metals have ticked up by over 3% since the beginning of November 2020. The stock was trading 1.49% higher this morning at 3.4p following the announcement.
Empire had already seen encouraging results at Eclipse at this time. Results had confirmed that mineralisation remained open at depth and along strike, with high-grade drill results along strike of historical workings confirming an extension to the main high-grade lode.
To date, Empire continues to receive positive results from Eclipse. Last week, assay results returned from the second phase of reverse circulation ('RC') drilling at the Project confirmed the presence of multiple parallel vein systems, in addition to the main Eclipse vein.
“Additional intersections of potentially economic mineralisation within 80m of surface further strengthens the Company's view that there is clear potential for a profitable open pit operation at Eclipse, and the next phase of work will likely include preparation of a JORC compliant resource estimate and pit optimisation studies,” Struthers told investors.
Interpretation of these results is now underway, and Empire highlighted that a further work programme at the project will be announced shortly. The Group also added that this is likely to include the preparation of a JORC compliant resource and initial pit optimisation studies.
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