PERTH (miningweekly.com) – ASX-listed EHR Resources will raise A$12-million through a share placement and a share purchase plan (SPP) to fund its current capital commitments, including earning an interest into the Naujaat diamond project, in Canada.
EHR will raise an initial A$10-million through a share placement to institutional and sophisticated investors, priced at 9.6c each.
The company on Monday said that the share placement will be conducted in two tranches, with the first consisting of 36.6-million shares, to raise an initial A$3.52-million under the company’s existing placement capacity.
The second tranche consisting of 67.49-million shares will be subject to shareholder approval.
In addition to the share placement, EHR is also undertaking an SPP to raise a further A$2-million. New shares under the SPP will also be issued at a price of 9.6c each.
“EHR has made very good progress since adding a focus on diamonds to its mineral resource project strategy, and the capital raising positions the company to meaningfully progress the projects we have acquired,” said MD Peter Ravenscroft.
“Importantly, a raising of this size allows us to fully focus on adding value to our existing investments while also strengthening the company’s position with regards to other potential project acquisitions.”
EHR earlier this month inked an agreement with TSX-V-listed Arrow Minerals to earn a 40% interest in the Naujaat project in return for funding a C$5.6-million preliminary bulk sample in 2021, with an up-front cash payment of C$300 000.
Naujaat is touted as the largest undeveloped diamond property in Canada that is not under the control of a major mining company.