Prior to publication, the information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). With the publication of this announcement, this information is now considered to be in the public domain.
Erris Resources plc / EPIC: ERIS.L / Market: AIM / Sector: Mining
5 May 2020
Erris Resources plc
("Erris Resources" or the "Company")
Placing to Further Develop the Loch Tay Gold Project
Erris Resources, the European focused mineral exploration company, is pleased to announce that it has raised approximately £0.33 million, before expenses, through a placing of 7,767,357 new ordinary shares in the Company ('Placing Shares') at a price of 4.25 pence per share (the 'Placing'). The net proceeds of the Placing will primarily be used to advance high-grade gold targets at the Company's Loch Tay Gold Project in Scotland, once the restrictions that have been put in place as a result of the Covid-19 pandemic have been lifted.
The proposed work includes a major soil sampling campaign over the Lead Trial - Dunan and Glen Almond target areas with ongoing licence wide sampling and geological mapping. These works aim to finalise the selection of prospective drill targets for testing before year-end subject to timing on easing of Covid-19 restrictions. Erris and its Loch Tay option agreement partner, GreenOre, have agreed to temporarily halt the earn-in period so no time will be lost as a result of the lockdown measures. From recommencement of work, Erris will have three years and eight months remaining on the earn-in period.
The Placing Shares will be issued utilising the Company's existing share authorities to issue new Ordinary Shares on a non-pre-emptive basis.
Erris Resources CEO, David Hall commented: "Securing these funds from new and existing shareholders is an endorsement of the opportunity that the Loch Tay Project offers. The Project area is highly prospective and lies within the Grampian Gold Belt, which hosts significant gold deposits such as Curraghinalt and Cononish. We are delighted to have the opportunity to rapidly develop the Project with this additional funding that will allow us to define drill targets for early testing.
"We are thankful for the support that we have received both from new and existing shareholders and I look forward to providing further updates on our progress. We have also appointed Turner Pope as our sole corporate broker going forward and would like to thank Shard Capital for all their support since before our IPO in 2017."
AIM Rule 17
Pursuant to AIM Rule 17, David Hall's shareholding in the Company remains at 6,827,000 Ordinary Shares but upon Admission, will represent 17.58% of the Company's then issued share capital.
Admission to AIM and Total Voting Rights
Application will be made for the Placing Shares to be admitted to trading on AIM ("Admission") and it is expected that Admission will become effective on or around 11 May 2020. The Placing Shares will rank pari passu with the existing ordinary shares of 1 pence each ("Ordinary Shares").
Following Admission, the Company will have 38,836,787 ordinary shares of 1 pence each in issue, each with one voting right. There are no shares held in treasury. Therefore, the Company's total number of ordinary shares and voting rights is 38,836,787. This figure may be used by shareholders from Admission as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA's Disclosure Guidance and Transparency Rules.
For further information visit www.errisresources.com or contact:
David Hall/Aiden Lavelle
Erris Resources plc
+353 (0) 94 902 8481
David Hart/Liz Kirchner
Allenby Capital (Nominated Adviser)
+44 (0) 20 3328 5656
Zoe Alexander/Andy Thacker
Turner Pope Investments (TPI) Ltd
+44 (0) 20 3657 0050
Isabel de Salis/Beth Melluish
St Brides Partners (Financial PR)
+44 (0) 20 7236 1177
Erris Resources plc (EPIC: ERIS.L) is an AIM quoted, European focused, discovery driven consulting and exploration company, supported by the Canadian mining major, Osisko Gold Royalties, which has a 18.9% interest in the Company. The Company has a portfolio of gold projects in Scotland, Sweden and Norway and zinc and base metals assets in Ireland, which it is looking to further build on. Led by a highly qualified team with extensive corporate and sector experience, Erris's strategy is to create shareholder value through commercial discovery of base or precious metal assets in proven mineral districts and in favourable European jurisdictions.