Eagle Mountain Mining Limited (ASX:EM2) Announces A$6.4 Million Entitlement Issue
Entitlement Issue Overview
Eagle Mountain Mining Limited (ASX: EM2) has announced a renounceable entitlement issue aimed at raising A$6.4 million to pivot towards exploration. This Initiative will support debt reduction and fund exploration activities, with an issue price set at A$0.008 per new share. The offer, available to around 2,000 shareholders, is underwritten to A$5.77 million, with major commitments from the Managing Director, Charles Bass, and other board members.
Leadership Transition
As part of the company’s new strategic focus, management changes will occur effective 31 January 2025. Fabio Vergara will take over as Executive Director, succeeding CEO Tim Mason, who will step down after five years. All current directors will waive their fees from 1 December 2024 to promote financial prudence as the firm runs lean during its exploration focus.
CEO Comments
Charles Bass, Managing Director, provided background on the changes, stating, “…[we] are concentrating our resources on exploration at our Wedgetail and Silver Mountain projects… I invite all shareholders to join me in participating in this Entitlement Issue, to enable Eagle Mountain to pursue its copper exploration focus.”
Use of Funds and Future Outlook
Proceeds from the entitlement issue will be allocated towards satisfying existing debt, exploring the Silver Mountain and Wedgetail projects, and covering general working capital expenses. The company continues to identify potential new opportunities to enhance its asset portfolio. The indicative timetable suggests that the entitlement issue will open on 8 January 2025 and close on 31 January 2025.
Motley Fool contributor Lauren Surplice 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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