ASX-listed junior Energia Minerals is hoping to raise A$3.12-million through a non-renounceable rights issue to fund work at its Gorno zinc project, in Italy.
Energia on Monday said that the two-for-five rights issue would be priced at 1c a share, which represented a discount of 37.5% to the company’s closing price on June 23, and a 35.1% discount to the ten-day volume weighted average price, miningweekly.com noted.
Executive chairperson and CEO Alex Burns told shareholders that the rights issue was being undertaken to provide the company with funding to support its redefined strategy for the Gorno project.
“As a board, we are confident in Gorno’s untapped potential and Energia’s ability to monetise what is a significant, high-quality, historical zinc project in the heart of western Europe.”
The funds raised through the rights issue would be used to better define the existing Gorno resource, conduct additional metallurgical variability testwork, enhance the database knowledge of the various regional targets, and explore commercial opportunities with strategic investors or partners to assist in the accelerated development of the Gorno project.
A recent increase in the project’s resource estimate has seen Energia reconsider the configuration of its Gorno project, with the company evaluating a smaller start-up operation using an existing access, which would result in a shorter development timeframe and a reduced up-front capital investment.