Emerita Resources Corp. [EMO-TSXV, EMOTF-OTC] said Friday it is raising $8 million via a private placement offering and will use the proceeds to continue exploration and development work on its Spanish base metal properties.
Emerita said it has struck a deal with a syndicate of agents in connection with an offering of 20 million units priced at 40 cents each. Each unit consists of one common share and one half of one common share purchase warrant. Each warrant will entitle the older to purchase a common share at an exercise price of 60 cents each for 36 months after the expected closing date on June 13, 2023.
On June 1, 2023, Emerita shares closed at 46.5 cents and currently trade in a 52-week range of $1.73 and 43 cents.
News of the financing comes after Emerita recently announced a maiden resource estimate for its 20 square kilometre Iberian Belt West property, which is located in the south of Spain, approximately 10 kilometres from the national border with Portugal.
Emerita acquired a 100% interest in the Iberia West project via public tender process. The project is hosted within the Iberian Pyrite Belt, one of the world’s most productive volcanogenic massive sulphide (VMS) tarranes.
Within the project area, there are several polymetallic (copper-zinc-lead-gold-silver) deposits, including Romanera, Infanta, and El Cura, that have been exploited intermittently over the last 2,000 years.
Historical drill programs were conducted by Rio Tinto (Romanera Deposit) and Phelps Dodge (La Infanta Deposit).
In a press release on May 23, 2023, Emerita announced a maiden NI 43-101 compliant resource estimate based on results from a 2022-2023 resource delineation drill program at La Romanera and La Infanta. Initial exploration work, including drilling, has recently commenced at El Cura and all deposits are open for expansion along strike and at depth.
The IBW property is estimated to host an indicated resource of 14.07 million tonnes of grade 3.29% zinc, 1.66% lead, 0.46% copper, 75.2 g/t silver and 1.39 g/t gold (7.63% zinc equivalent ZnEq). On top of that is an inferred resource of 4.71 million tonnes of grade 4.70% zinc, 2.14% lead, 0.54% copper, 72.4 g/t silver and 0.90 g/t gold (9.29% ZnEq).
The estimates include an indicated resource of 13 million tonnes of 7.08% ZnEq in La Romanera plus 1.07 million tonnes of 14.32% ZnEq indicated at La Infanta.
The La Romanera and La Infanta deposits occur approximately 6.0 kilometres from each other. The company said the near-term focus for the Emerita exploration team is to continue to expand the mineralization at La Romanera and explore the area between the two deposits, with a particular focus on the historic El Cura target.