How are the dots going now? More dilution...
19 August 2020
Europa Metals Ltd
("Europa Metals", the "Company" or the "Group") (AIM, AltX: EUZ)
Equity Fundraising of £2,000,000 Europa Metals, the European focused lead-zinc and silver developer, is pleased to announce that it has raised £2,000,000 (before expenses) (the "Fundraising") via the issue of, in aggregate, 15,686,274 new ordinary shares of no par value each in the capital of the Company ("Ordinary Shares") (the "Fundraising Shares") at an issue price of 12.75 pence per share (the "Issue Price") to certain existing and new investors.The Fundraising comprises a placing of 15,529,412 new Ordinary Shares, arranged by Turner Pope Investments (TPI) Limited ("Turner Pope"), the Company's broker, as agent of the Company, and a subscription for a further 156,862 new Ordinary Shares by certain Directors of the Company.The Fundraising is conditional on admission of the Fundraising Shares to trading on AIM ("Admission") and, following Admission, the Fundraising Shares will represent, in aggregate, approximately 31.9 per cent. of the Company's enlarged issued share capital.The Fundraising Shares will be issued fully paid and will rank pari passu in all respects with the Company's existing Ordinary Shares. The Issue Price represents a discount of approximately 22.7 per cent. to the closing mid-market price of an Ordinary Share on AIM of 16.50 pence on 18 August 2020, being the last business day prior to the date of this announcement.
Use of Proceeds
The net proceeds from the Fundraising will primarily be utilised towards completion of certain key components of a Pre-Feasibility Study ("PFS") in respect of the Company's wholly owned Toral lead-zinc-silver project located in the Castilla y León region, northern Spain ("Toral" or the "Toral Project"), as well as for the Company's general working capital requirements. The PFS workstreams concerned will include:· Hydrogeological studies to ascertain sub surface water conditions;· Drilling targeting increases in the confidence level of the overall mineable resource for Toral; and· Further metallurgical, geotechnical, waste management and environmental work components.The Board of Europa Metals believes that completion of the above PFS components will further demonstrate the viability of the Toral Project by advancing the Company's understanding of metallurgy and hydrogeological conditions, defining the parameters for waste management and environmental considerations, as well as potentially upgrading areas of the current resource into higher categorisations.
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