Eastern Mediterranean Resources Public Limited (EMED), that is exploring for copper in Cyprus, the Balkans and the Caucasus, has conditionally placed 12 mln new ordinary shares of 0.25 pence each par value at an issue price of 12.5 pence each with existing and new shareholders. The placing will raise GBP 1.5 mln gross (GBP 1.4 mln net after associated expenses) and is conditional upon admission to trading on AIM of the new ordinary shares. Admission will be effective and the placing will be completed on March 10.
Hichens, Harrison & Co. plc was the lead broker, supported by Lewis Charles Securities as joint broker.
The funds raised increase cash at bank to GBP 2.1 mln, which will continue to be used for general working capital purposes in accordance with the plan set out in EMED’s AIM admission document issued in May 2005.
The company is currently focused primarily on establishing material mineral resources in:
— Cyprus, by follow-up geophysics and drilling with the aim of locating an economic copper deposit within the recently discovered copper-mineralised system at North Alestos;
— Georgia, by mapping, trenching and drilling with the aim of verifying recently acquired gold and copper resources (Russian classification); and,
— Slovakia, mapping, trenching and drilling zones of near-surface alteration and mineralisation.
In addition to the Placing, EMED has committed to issue 1,888,888 new ordinary shares to acquire data and rights to projects in the region from companies associated with its three newly appointed Chief Exploration Executives — Bob Close (Cyprus-Middle East), Paul Hanzl (Caucasus) and Jeff Rayner (Eastern Europe).
Harry Anagnostaras-Adams, EMED’s Managing Director, said: “The placing leaves the company with a strong balance sheet and well positioned to continue the pursuit of the strategy set out at the time of its AIM admission. The placing was completed in a short period of time, which the directors believe reflects the strong support for EMED’s rapid progress. The placing has also allowed us to widen our shareholder base, including several new institutions whose focus is on the emerging markets in Eurasia. Concurrently with this placing, EMED has expanded its regional database and strengthened its team.”
EMED, listed on AIM in May 2005, is headquartered in Cyprus where exploration is centred on the Troodos ophiolite complex. The targeted mineralisation style is volcanic-hosted massive sulphide copper deposits under shallow cover, similar to the larger Cyprus copper mines – three of which exceeded 10 mln tonnes of ore, at grades between 1% and 4.5%.
Eastern Europe exploration areas are centred on a cluster of volcanic centres in Slovakia and Hungary. The targeted mineralisation styles are high-grade epithermal gold, or bulk-mineable epithermal gold and porphyry copper-gold.
Caucasus exploration areas and options focus on gold and copper prospects in and around Georgia with resources of 2 mln ounces of gold.
