Erris has today announced its successful raising of c,£330,000 (gross) through a placing of some 7.77m new ordinary shares at a price of 4.25p.
This follows news last week of highly encouraging results for the Company’s recently optioned and highly prospective Loch Tay project (‘the Project’) in Scotland. Under an agreement with GreenOre Gold plc (‘GreenOre’) signed in December 2019, Erris will now undertake exploration work that is expected to result in it assuming both Operatorship and an 80% working interest in the asset.
Together with the €1.2m cash held by Erris at end-March 2020, this additional funding is expected to be sufficient to advance the Project to the point of defining drill targets with potential to host the 250k oz inferred gold resource targeted by the option. Significantly, this is similar in scale to the nearby Cononish mine which currently has a combined (Au & Ag) resource estimate of 246koz and grading at 11.7g/t Au-equivalent and had, prior to the COVID-19 forced mine closure, been expected to produce first gold this month.
Although the Loch Tay project is still an early stage exploration play, initial sampling of float and subcrop has returned high grade gold that along with the outcropping mineralised veins at its Lead Trial prospect, together with the low production costs detailed within the bankable feasibility study commissioned for Scotgold Resources’ neighbouring mine, suggests particularly attractive economics within a low-risk territory. Further updates as Erris advances toward initial drill testing are expected to build confidence further.
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