Encounter Resources Limited (ASX:ENR) Raises Funds for Aileron Project
Institutional Placement
Encounter Resources Limited has successfully secured firm commitments to raise A$15 million via an institutional placement, pricing the shares at A$0.35 each. This price reflects a 10.9% discount to the 10-day volume-weighted average price. This funding will enhance drilling and exploration activities at the Aileron Project in the West Arunta region of Western Australia.
Expansion Plans
The proceeds from the placement will be allocated towards extensive exploration of the Crean, Emily, and Green niobium-REE mineralised carbonatites. Additionally, it will support reconnaissance drill programs and metallurgical assessments. Encounter Resources anticipates an increase in its cash reserves, reaching approximately A$22 million upon completion of the placement.
Executive Comments
Will Robinson, Executive Chairman of Encounter, expressed enthusiasm about the placement’s strong demand from both existing and new investors. “We are delighted with the strong placement demand seen from existing shareholders, as well as a number of new large domestic and offshore investors. This provides a strong endorsement of the recent exploration success and future upside at Aileron,” Robinson stated.
Share Purchase Plan
Eligible shareholders will also have the opportunity to participate in a Share Purchase Plan to raise up to A$3 million at the same price per share as the placement. Each shareholder will be able to subscribe for up to A$30,000 worth of additional shares. Key details about the plan will follow in subsequent announcements.
Company Background
Encounter Resources is a leading mineral exploration company focused on discovering significant copper and niobium/REE deposits in Australia. The company is committed to advancing its extensive project portfolio in Australia’s most promising mineral regions.
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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