Eastern Metals Plans Up to A$4M Capital Raise Following CEO Resignation

Quarterly Exploration and Operational Status

Eastern Metals Limited (ASX: EMS) reported a subdued March 2025 quarter, with no active exploration undertaken across its key projects. At Browns Reef in New South Wales, the company focused on rehabilitation of drill sites at Kelpie Hill, Windmill Dam, and Evergreen prospects, but no new drilling or sampling occurred. Similarly, the Arunta Project in the Northern Territory saw no exploration activity during the period.

This operational pause comes amid a tight cash position, with the company holding just A$49,000 at quarter-end and no debt. Exploration and evaluation expenditure totaled approximately A$56,000, primarily directed towards site rehabilitation and tenement maintenance.

Leadership and Board Changes Signal Strategic Reset

Corporate governance saw notable changes, with Ian White elevated from Non-Executive Director to Non-Executive Chairman following Dr Jason Berton’s retirement. Gregory Starr joined the board as an Independent Non-Executive Director, filling the vacancy left by Dr Berton. Meanwhile, CEO Ley Kingdom announced his resignation effective May 2, 2025, marking a significant leadership transition at a critical juncture for the company.

Capital Raising Initiatives to Bolster Funding

Facing limited cash reserves, Eastern Metals secured firm commitments for an initial placement to raise A$250,000 through the issue of 25 million shares at A$0.01 each, accompanied by attaching options exercisable at A$0.015 over three years. The company also outlined plans for a subsequent placement targeting between A$3 million and A$4 million, subject to shareholder approval, which would involve issuing up to 400 million shares and corresponding options on similar terms.

These capital raising efforts are critical to sustaining operations and advancing the company’s strategic objectives, especially given the current funding constraints and ongoing exploration ambitions.

Proposed Acquisition of Raptor Resources

In a strategic move to expand its copper exploration footprint, Eastern Metals entered into a non-binding term sheet to acquire all issued capital of Raptor Resources Limited, an unlisted copper exploration company. This proposed transaction remains subject to due diligence, regulatory approvals, binding documentation, and shareholder consent. The acquisition could potentially enhance Eastern Metals’ resource base and project pipeline, though details on the financial and operational impact remain forthcoming.

Voluntary Suspension and Compliance

On April 24, 2025, Eastern Metals applied for voluntary suspension of its shares on the ASX, which remains in effect as the company works to re-comply with Chapters 1 and 2 of the ASX Listing Rules. This suspension underscores the transitional phase Eastern Metals is navigating, balancing governance, capital restructuring, and strategic growth initiatives.

Notably, the company’s mineral resource inventory continues to be anchored by the Home of Bullion project in the Northern Territory, with detailed resource estimates reaffirmed in the report, though no new exploration results were disclosed this quarter.