PriceSensitive

Emerita Resources to raise $1M via private placement

Mining
TSXV:EMO
14 May 2020 07:00 (EDT)

Emerita Resources (TSXV:EMO) is set to raise up to C$1 million in a non-brokered private placement.

Based in, Spain, with an administrative office in Toronto, the company is focused on the acquisition, exploration and development of mineral properties in Europe.

With its joint venture partner, Grupo Aldesa, Emerita holds a 50 per cent interest in the Plaza Norte Project, located in the famous Reocín mining district in northern Spain. 

In addition, the company is in the process of acquiring two zinc development opportunities, the Aznalcóllar Project and the Paymogo Zinc Project.

Under the terms of the private placement, Emerita will issue up to 20 million units at a price of $0.05 each. These units will consist of one common share in the company, as well as one common share purchase warrant.

Each warrant will entitle the holder to acquire an additional common share at a price of $0.15 for a period of 24 months from the closing date. 

However, should Emerita’s shares trade at a price equal to or higher than $0.25 for a period of 20 consecutive days, the company may accelerate the expiry date of the warrants.

Emerita says that the proceeds from the placement will be used to fund exploration activities at its properties in Spain, as well as for general working capital and corporate purposes.

The placement is expected to close on approximately June 15 this year, with all securities issued subject to a holding period of four months and one day.

Emerita Resources (EMO) is currently steady and is trading at 6 cents per share, as of 3:45pm EDT.

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