We caught up with Merlin Marr-Johnson, CEO of Erris Resources Plc earlier today to find out what his plans are for their mining projects in Ireland and Sweden. Merlin talks about why their Gold project in Sweden is a free carry and explains why the vast majority of the IPO monies will be going into their Zinc exploration in Ireland.
Erris Resources Plc, the European focused mineral exploration company with a portfolio of zinc prospects in Ireland and gold projects in Sweden, is pleased to announce that its ordinary shares will start trading on AIM at 8.00 a.m. today under the ticker ERIS.L (“Admission”). As part of the Admission process, the Company has raised £4 million, before expenses, through a Placing of 16,000,000 new ordinary shares at a placing price of 25 pence each implying a market cap of £7.8 million on Admission.
The Company’s Nominated Adviser is Allenby Capital Limited and its Joint Brokers are Shard Capital Partners LLP and Turner Pope Investments (TPI) Ltd.
· Raised £4 million before expenses to develop what the directors consider to be a highly prospective portfolio of zinc assets in Ireland and gold projects in Sweden and to identify and acquire additional exploration opportunities that have potential to significantly re-rate though exploration
· Strategy to create shareholder value through early generative exploration and discovery and advance projects via joint venture and industry partnerships
· Industry backing at company and project level: Osisko Gold Royalties, has invested £1.47 million in the placing to become a 18.9% shareholder; and Centerra Gold has a Strategic Alliance with Erris to explore a portfolio of gold properties within a common Area of Interest in northern Sweden
· Dynamic work programme planned with regular news flow from drilling reports and results, mapping, sampling and petrographic studies across key projects:
o Abbeytown – a high grade, shallow, district-scale zinc exploration target in a proven mineral district in County Sligo, Ireland – 5,000-metre drill programme beginning Q1 2018
o Brännberg – a large-scale gold target with historic drill results and high-grade float in the Skellefteå mining district, northern Sweden – geophysical surveys to be completed prior to drilling
o Klippen – a gold project in northern Sweden, in which Centerra Gold has made an election to invest $1m (the first $0.4m of which has already been invested) to earn 51% – ongoing drilling
o Käringberget – a silver, gold, copper and zinc project in Sweden with known deposits and in which Centerra Gold has made an election to invest $1m (the first $0.4m of which has already been invested) to earn 51% – ongoing drilling
· Focus on building pipeline of base or precious metal exploration assets in proven mineral districts and in favourable European jurisdictions
· Strong market fundamentals
o Zinc in a period of sustained supply deficit, while demand continues to grow – Ireland represents a supportive jurisdiction with large scale historic zinc production
o Gold likely to remain well supported in current economic climate given its ‘safe haven’ status
· Led by a highly qualified team with proven experience and track record of discovery, resource delineation, joint ventures and trade sales
Erris CEO, Merlin Marr-Johnson, said,
“Exploration is the lifeblood of the resource sector, yet in recent years discovery rates have collapsed as discretionary spending by mining companies on exploration has dried up. As primarily a discovery-driven exploration company with a focus on zinc and gold, we aim to delineate resources that contribute to the next generation of mines. To this end, we have a portfolio of highly-prospective mineral assets, an experienced team, and the support of two significant industry partners with strong balance sheets, Osisko Gold Royalties and Centerra; these companies have endorsed both our business model and team, and recognise our potential to make commercial discoveries. Furthermore, we are operating in a great space, exploring for key commodities in pro-mining regions within low-risk jurisdictions. As we embark on multiple drilling programmes during 2018, I look forward to updating shareholders regularly throughout the year.”
For further information and the full Admission document, visit www.errisresources.com
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