10th December RNS27 Feb 2021 19:16
Whilst it is very frustrating to have received such good, shallow, high-grade intercepts from the Eclipse drilling and yet for the SP to drop, I thought you might like to re-read the 10th December Eclipse purchase terms and factor those into the value to be released from a profitable, small scale, open pit operation at same, which should be commenced later this year:
Empire Metals has exercised its Option to acquire a 75% interest in the Eclipse Gold Project from Philips Exploration Pty Ltd. The Company will pay AUD$1,000,000 (approximately £550,000) in cash, AUD$500,000 (£277,750) to be settled via the issue of 7,095,510 new ordinary shares of no-par value at a price of 3.91p (calculated by reference to the 30-day VWAP) and the issue of 7,095,510 warrants exercisable at 4.70p (a 20% premium to the 30-day VWAP) for two years. In addition, a finder's fee will be paid to an unrelated party of AUD$500,000 (£277,750) to be settled via the issue of 7,095,510 new ordinary shares of no-par value at a price of 3.91p (calculated by reference to the 30-day VWAP) and the issue of 7,095,510 warrants exercisable at 4.70p (a 20% premium to the 30-day VWAP) for two years.
Thus both the seller AND the finder have warrants at 4.7p as part of their payment. I suggest this was acceptable as that SP is seen as easily achievable on commencement of mining at Eclipse. Mike Struthers has said in interview that 'anything over 1g/tonne would be very profitable' at Eclipse, given the easy nature of extraction and close processing facilities. We have lots of intercepts in the 2-3g/tonne and others at 5g and 6g and upwards.
Mike himself has option at 4p and 5.5p. See the RNS's...
So, as I'm sure you all noticed, gold slipped a bit on Friday only to return back to $1735. With the friendly extraction economics at Eclipse, profit is there for the taking at 1g/tonne upwards.
We do need a CEO. I expect one in the next 2-3 weeks. Sale of Georgian assets would be great, but no guess of timeline is really possible. However a JORC and initial mine plan will here end of March or early Q2 I believe. In interview, MS said this was not difficult.
Perhaps a few bumps in the road yet but the graph will jolt north some day soon. will you be ready??
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