Element 29 Resources (ECU.V) has closed its previously announced financing, issuing 32.25M shares at C$1.10 per share for total gross proceeds of C$35.5M, and net proceeds of approximately C$34.8M after taking finders fees into consideration.
The company was able to add Alpayana to its shareholders register, and this new strategic investor acquired a 9.9% interest in the company. Alejandro Gubbins’ investment holding has been quite active lately as Alpayana also acquired positions in Kingfisher Metals (copper and gold in British Columbia) and is the lead for a financing of Pan Global Resources (copper and gold in Spain). Element 29’s Elida project appears to be the most advanced of the projects Alpayana recently invested in. Element 29 announced Randy Smallwood also participated in the financing which could and should be seen as yet another vote of confidence.
With this impressive no-warrant capital raise, Element 29’s treasury is in an excellent shape to continue to expand the currently known resource at its flagship Elida project in Peru. We hope to see additional drill results soon, as we will never get tired of seeing 900-1,400 meter deep holes with continuous mineralization.
Also, keep in mind that Element29 has 19M warrants outstanding of which 13M are due in 2027 (with a C$0.50 exercise price) and 6.3M are due in 2028 (with a C$0.70 exercise price). All these warrants are currently in the money and could bring in an additional C$11M in cash. This could further be increased to in excess of C$11.5M as there are also 1.02M options at C$0.57 expiring in 2027.
Disclosure: The author has a long position in Element 29 Resources. Element 29 Resources is a sponsor of the website. This post is for educational purposes only; be mindful investing in junior mining stocks is risky and you may lose your entire investment if things go wrong. Please read the disclaimer.
