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EMPIRE RESOURCES LIMITED — Capital/Financing Update 2021
Oct 19, 2021
64875_rns_2021-10-19_db796279-6311-449f-b7c8-bd876b32d9d5.pdf
Capital/Financing Update
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20 October 2021
ASX Release
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SALE OF DACIAN SHAREHOLDING
HIGHLIGHTS
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Sale of remaining 4.0M Dacian (ASX:DCN) shares nets $839,000
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- Total investment profit of $2.6M for 175% return on investment
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- $2.0M cash with zero debt
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Strong financial position to execute exploration programs
BACKGROUND
In July 2019 Empire Resources Limited borrowed $1.5M from Empire’s Non-Executive Chairman and major shareholder, Michael Ruane[[1]] . The loan facility allowed Empire to take a placement of 46.15M fully paid ordinary shares in fellow gold explorer NTM Gold Limited (ASX:NTM) at $0.0325 per share.
In November 2020 NTM agreed to merge with producing gold company Dacian Gold Limited (ASX:DCN)[[2]] , with NTM shareholders to receive 1 Dacian share for every 2.7 NTM shares held. At the time of announcement on 16 November 2020, the merger valued NTM at $0.1296 per share, being Dacian’s closing share price of $0.35 divided by 2.7.
The merger between NTM and Dacian was completed in March 2021, with share settlement from 17 March 2021[[3]] . Empire was issued 16,995,818 Dacian shares in the settlement[[4]] .
Post completion of the merger Empire has sold its DCN shareholding for total net proceeds of $4,349,591. On 21 September 2021 Empire announced that it had repaid its $1.5M loan facility and outstanding interest[[5]] .
The NTM/DCN investment returned a profit of $2,629,130 (unaudited), a 175% return on investment.
| Period | Shares Sold | Net Proceeds |
|---|---|---|
| March 2021 Quarter[4] | 1,245,818 | $425,948 |
| June 2021 Quarter[6] | 2,715,000 | $1,026,601 |
| September 2021 Quarter[5] | 9,035,000 | $2,058,144 |
| December 2021 Quarter | 4,000,000 | $838,898 |
| Totals | 16,995,818 | $4,349,591 |
Table 1 – Dacian Share Sales Since Merger Completion
t +61 (0) 8 6389 1032
www.resourcesempire.com.au [email protected] 159 Stirling Highway, Nedlands WA 6009
EMPIRE RESOURCES LIMITED ACN 092 471 513 ASX: ERL
ASX Announcement 20 October 2021
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At close of business 19 October 2021 Empire held $2.0M cash at hand (unaudited) with no debt. The cash at hand puts Empire in a strong financial position to expand its exploration and corporate objectives.
This announcement is authorised for release by:
Sean Richardson
Managing Director
For further information on the Company Phone: +61 (0)8 6389 1032
Additional Information
Further details relating to the information in this release can be found in the following ASX announcements:
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ASX:ERL “ Empire Makes Investment in NTM Gold Limited ” 11 July 2019
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ASX:DCN “ Dacian and NTM Gold Agree Merger to Unlock Shareholder Value Through Regional Consolidation ” 16 November 2020
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ASX:DCN “ Merger of Dacian and NTM Implemented ” 15 March 2021
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ASX:ERL “ Quarterly Report for the Period Ending 31 March 2021 ” 27 April 2021
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ASX:ERL “ Repayment of Loan Facility ” 21 September 2021
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ASX:ERL “ Quarterly Report for the Period Ending 30 June 2021 ” 19 July 2021
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EMPIRE RESOURCES LIMITED ASX: ERL
ASX Announcement 20 October 2021
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About Empire
Empire Resources Limited (ASX:ERL) is a gold and copper focussed exploration and development company. Empire owns four highly prospective projects. The Yuinmery CopperGold Project 470km northeast of Perth in the Youanmi Greenstone Belt, the Barloweerie multielement precious and base metal project, the Nanadie Copper-Gold Project southeast of Meekatharra in the Murchison Region and the Penny’s Gold Project 45km northeast of Kalgoorlie in the prolific Eastern Goldfields Region of Western Australia. Empire’s projects have numerous exploration targets with excellent potential.
Empire has an experienced team of exploration, development and financial professionals who are committed to developing a sustainable and profitable mineral business. Empire seeks to extract value from direct exploration in its existing projects as well as identifying value accretive investment opportunities that complement the Company’s development objectives.
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Empire Resources Project Locations
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EMPIRE RESOURCES LIMITED ASX: ERL