24/06/2013 - 14:08

Chrysalis and Emergent turn to China

24/06/2013 - 14:08

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Chrysalis and Emergent turn to China

Junior miners Chrysalis Resources and Emergent Resources have turned to Chinese investors for funding.

Both companies announced that they will be issuing shares to Chinese investors to fund current projects and explore new opportunities.

The Chrysalis share issuing is the larger of the two with the company aiming to raise an initial $2.35 million through a placement at 6 cents a share with Eagle Brilliant Holding (EBH).

Chrysalis has said the funds will be used for further exploration on its Zambian projects as well as to meet working capital requirements.

The initial placement will give EBH a 19.9 per cent stake in Chrysalis and, subject to shareholder and regulatory approvals, it will make a second placement at 6 cents that will lift EBH's stake to 25 per cent.

EBH will appoint an executive director after the first placement and a second non-executive director if the second proceeds.

EBH’s executive chairman, Jiaping Jiang, said the company is very pleased to have selected Chrysalis for investment and that his company looks forward to creating a profitable copper business.

Mr Jiang is also CEO and founder of Tian Di Long, a Chinese based manufacturer of copper goods.

Emergent will also be looking to raise funds through Chinese investment through the issuing 20 million shares at 1.3 cents a share to Advanced Endeavour Enterprises.

The company expects to raise $260,000 through the share issuing which will take their cash to excess of $3 million which it will use to develop current projects and fund acquisitions and investments.

The announcement of share issuing comes with the appointment of Andrew Tunks as executive director of Emergent.

Chrysalis’ stock last traded at 5.5 cents while Emergent’s last traded at 1 cent. 

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