Encounter Resources (ASX:ENR) eyes $4m to advance copper, lithium and rare earth exploration – The Market Herald
- Encounter Resources (ENR) is calling on investors for $4 million to advance exploration for copper, lithium and rare earths at its Australian projects
- The company plans to place 33.3 million shares with private investors at 12 cents per share, a discount of about 14% from its last closing price.
- Subject to shareholder approval, the company’s directors plan to subscribe for 2.5 million shares at the same price to raise an additional $300,000.
- The capital increase will help fund exploration work at ENR’s Sandover project in the Northern Territory and the Aileron and Lamil projects in Western Australia.
- Encounter Resources shares are down 6.9% at 13.5 cents at 1:18 p.m. AEST
Encounter Resources (ENR) has appealed to investors for $4 million to advance exploration for copper, lithium and rare earths in its Australian projects.
Emerging from a trading halt, the company today revealed that it has received firm commitments from sophisticated, professional and experienced investors for 33.3 million shares at 12 cents per share, a discount of around 14% from its last closing price.
Additionally, the company’s directors subscribed for 2.5 million shares at the same price to raise an additional $300,000.
The director placement is subject to shareholder approval, which will be sought at the company’s annual general meeting on November 29.
Managing Director Will Robinson said the placement would allow the company to accelerate its planned exploration activities at its wholly-owned projects.
In particular, the funds are earmarked for copper and lithium exploration at ENR’s Sandover project in the Northern Territory, where bornite has been identified in historic drill core.
Encounter is also looking to continue testing gold, copper, iron oxide and rare earth ore potential at its Aileron project in the West Arunta region of Western Australia.
Also in WA, the company is exploring for copper and gold on its Lamil project.
Canaccord Genuity and Chieftain Securities acted as co-managers of the placement and will receive two million options exercisable three years from the date of issuance.
Shares of Encounter Resources fell 6.9% to 13.5 cents at 1:18 p.m. AEST.