Energia raises $6m for zinc project

Local explorer Energia Minerals has tapped investors for $6.1 million to fund ongoing work at its Gorno zinc project in Italy.

Energia plans to undertake a two-for-seven rights issue at 3.5 cents per share, representing a 27.1 per cent discount to its last closing price.

The offer has been fully underwritten by Euroz Securities, and sub-underwritten by an entity associated with Energia non-executive director Marcello Cardaci.

Funds raised from the rights issue will be used to complete a definitive feasibility study on Gorno, continue exploration on its other projects, and for general working capital.

“This rights issue is a strategic and timely fund raising to meet the company’s stated objectives to expand the drilling program, complete the definitive feasibility study in the early new year and, without pre-empting the outcomes of the DFS, complete preparatory work to fast-track the development of Gorno,” chairman Alexander Burns said.

“The company made the decision to do a capital raising in this manner and at this time in light of the positive results achieved to date, support for the project at all levels and given the strengthening outlook for the zinc market.

“For my part, I intend to take up my full entitlement of 39.9 million new shares in respect of the 139.8 million shares I own and control, thereby investing a further $1.4 million in the company and bringing my total investment to date to over $5 million.

“Mr Cardaci has also confirmed the entities in which he has a disclosed interest or association with also intend to take up their full entitlements.

Together with the managing director, Kim Robinson, and our competent team of professionals, we are all committed to ensure the funds will be utilised in continuing to add shareholder value.”

Energia shares were 8.3 per cent lower to 4.4 cents each at 12:30pm.