Eagle Mountain Mining Initiates A$6.4 Million Capital Raise

Highlights:

• Capital Raise: Eagle Mountain Mining Limited (ASX: EM2) is undertaking a renounceable entitlement issue to raise up to A$6.4 million, with 90% underwritten at A$5.77 million, ensuring strong financial backing.
• Debt Reduction & Exploration Focus: Funds will be allocated toward reducing debt, advancing exploration at the Silver Mountain and Wedgetail Projects, and pursuing new business opportunities to create shareholder value.
• Leadership Commitment: Managing Director Charles Bass and key board members have pledged significant sub-underwriting support, totaling over A$3.15 million, demonstrating confidence in the company's exploration pivot.

Eagle Mountain Mining Limited (ASX: EM2) has announced a renounceable entitlement issue aimed at raising up to A$6.4 million. This strategic initiative underscores the company’s pivot toward exploration activities while reducing debt and positioning itself for future growth. At the time of writing, Eagle Mountain’s share price reflects a 46.7% discount on the A$0.008 issue price compared to its last closing price of A$0.015 on December 11, 2024.

Key Features of the Capital Raise

The entitlement issue allows eligible shareholders to acquire two new fully paid ordinary shares for every existing share held. Additionally, participants will receive one free unlisted option for every four new shares subscribed, exercisable at A$0.016 within 30 months of issuance. Notably, the offer is underwritten to A$5.77 million, equating to 90% of the total capital targeted.

Eagle Mountain's Managing Director and major shareholder, Charles Bass, has committed A$3.0 million as subordinated sub-underwriting, effectively converting existing loans to equity. Non-Executive Chairman Rick Crabb and Director Roger Port have also shown strong support, committing A$150,000 and their full entitlements, respectively.

Allocation of Funds

Proceeds from the entitlement issue will be allocated as follows:

• Debt Reduction: A$3.0 million to settle existing loans.
• Exploration Projects: A$1.0 million to advance activities at Silver Mountain and Wedgetail projects.
• New Opportunities: Up to A$1.2 million to evaluate and develop additional ventures.
• General Working Capital and Offer Costs: The remaining funds will support ongoing operations and cover offer expenses.

A Strategic Shift in Focus

The capital raise represents a strategic shift for Eagle Mountain Mining, prioritizing exploration potential over operational projects like the Oracle Ridge Mine. CEO Tim Mason emphasized the company’s goal to leverage Silver Mountain’s high-grade copper and gold prospects in a globally recognized jurisdiction.

Shareholders are encouraged to review the company’s prospectus and participate in the entitlement issue, which opens on January 8, 2025, and closes on January 31, 2025.

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