- Essential Metals (ESS) enters a trading halt ahead of a placement
- ESS recently began drilling at its Pioneer Dome Project in WA which aims to increase the mineral resource and support a standalone mining operation
- As of June 30, the company had $5.5 million and no debt so whether upcoming funding will act as a boost for current and planned activities is not yet clear
- Essential Metals expects to remain in the trading halt by no later than Thursday, August 5
- Company shares last traded at 13.5 cents on Monday, August 2
Essential Metals (ESS) has entered a trading halt ahead of a capital raise.
It isn't certain how much the company will raise or what the money will be used for. The only details known at this stage are that the capital raise will be in the form of a placement.
Essential Metals recently announced its farm-in and joint venture with ASX-listed Black Cat Syndicate (BC8) has proceeded to stage two.
BC8 spent $150,00 on exploration at the Balagundi Project in Western Australia which satisfied the initial commitment expenditure. BC8 is looking to earn a 75 per cent interest in the project.
In mid-July, ESS began a 5000-metre drilling program at its wholly-owned Pioneer Dome Project in WA.
This program is targeting the Dome North lithium deposit and is aimed at exploring for spodumene-bearing pegmatites. This will help to increase the existing mineral resource and support a standalone mining operation.
Drilling is expected to wrap up this month and soil sampling and mapping will continue.
In its most recent company presentation, Essential Metals claimed it was well funded with $5.5 million as of June 30 and had no debt. Whether or not the upcoming funding will act as a cash boost to support current drilling and planned activities is not yet clear.
Essential expects to remain in the trading halt by no later than August 5.
Company shares last traded at 13.5 cents on Monday, August 2.