PERTH (miningweekly.com) – Metals developer European Metals has raised A$3-million from its largest shareholder through a combination of a share placement and the exercise of options.
The ASX-listed company said on Monday that it would place some five-million chess depository interests, at an issue price of 52c each, to shareholder Rare Earth Minerals to raise an initial A$2.6-million.
The offer price is the closing price of European Metals shares on September 30.
The placement is subject to shareholder approval.
Meanwhile, Rare Earth Minerals will also exercise two-million unlisted options, which are due to expire on October 19. This exercise will result in a further A$400 000 raising.
The share placement and the option exercise will result in Rare Earth Minerals holding a 20.92% shareholding in European Metals.
The junior said on Monday that the funds raised would be used to further develop the Cinovec lithium/tin project, in the Czech Republic, complete a preliminary feasibility study and for working capital.
European Metals recently decreased the expected capital spend at the Cinovec project from $254-million to $169-million, following a review of the scoping study.
Edited by: Creamer Media Reporter
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