Eagle Mountain Mining Moves to 100% Ownership of Oracle Ridge
THE BOURSE WHISPERER: Eagle Mountain Mining (ASX: EM2) will have plenty to discuss at next week’s RIU Sydney Resources roundup after announcing it is to assume 100 per cent ownership of the Oracle Ridge copper project in Arizona, USA.
Eagle Mountain is to acquire Vincere’s 20 per cent interest in the high-grade Oracle Ridge copper project in exchange for the issue of 10 million shares in Eagle Mountain representing a 5.2 per cent shareholding in Eagle Mountain.
Eagle Mountain’s attributable copper resources will increase by 81 million pounds of copper at an effective acquisition price of US$0.10/lb copper in JORC Resources.
The project has existing JORC resources of 12.2 million tonnes at 1.51 per cent copper, 16.3 grams per tonne silver, 0.19g/t gold for 184,000 tonnes of contained copper at a 1 per cent copper cutoff grade.
“We believe this is a highly value accretive transaction for our shareholders at a time when copper prices are surging due to strong global demand and supply limitations,” Eagle Mountain Mining CEO Tim Mason said in the company’s ASX announcement.
“The acquisition of Vincere’s 20 per cent interest in Oracle Ridge increases the company’s JORC Resources by 81 million pounds of contained copper, but more significantly provides full exposure to the exploration potential at the project.
“This potential includes multiple high-grade drilling intercepts outside the JORC resources along with large scale prospective areas underneath the Leatherwood granitic intrusive at OREX.
“The acquisition also enables a much simpler structure to progress Oracle Ridge through all phases leading to production.
“Following completion, Vincere will become a shareholder in Eagle Mountain and will still benefit from exposure to Oracle Ridge along with other growth opportunities in the company.
“I truly thank Vincere for their contribution to Oracle Ridge and we warmly welcome them as shareholders in Eagle Mountain.”
Email: info@eaglemountain.com.au