EMA to raise $12m for Mulga Rocks

Explorer Energy and Minerals Australia (EMA) has unveiled plans to raise more than $12 million to advance its Mulga Rock uranium deposit in WA.

The equity raising will take place in two parts with the placement of 43.6 million shares at a discounted 21 cents each to institutional and sophisticated investors of Austock Corporate Finance.

The shares come with one free attaching option, exercisable at 33 cents and holding an expiry date of July 31 2011.

The placement will raise a total of $9.16 million.

EMA will also carry out a share purchase plant to raise a further $3 million with each security offered at 21c.

Up to 14.29 million shares and 14.29 million options will be offered under the SPP, which is not underwritten.

'Funds from the raising will allow EMA to continue development of the Mulga Rock uranium deposits and reach project milestones," EMA managing director Chris Davis said.

"Achievement of these milestones will place the Company in a strong position to engage with uranium end‐users."

Shares in the company dropped one cent to 27c at 11:02 AEST.