Eastern Metals’ Raptor Acquisition Hinges on Capital Raise and ASX Reinstatement
Eastern Metals Limited has entered a definitive agreement to acquire Raptor Resources Limited, adding significant copper and gold assets in Canada and Western Australia, alongside a planned capital raise to fund exploration and ASX reinstatement.
- Acquisition of 100% of Raptor Resources Limited
- Chester Project hosts 6.68Mt at 1.092% copper JORC resource
- Capital raising of $4.5m to $5m to fund exploration and working capital
- Board reshuffle with Raptor nominees joining Eastern Metals
- Company to rebrand as Raptor Metals Ltd post-acquisition
A Transformational Acquisition
Eastern Metals Limited (ASX, EMS) has announced a landmark move to acquire 100% of Raptor Resources Limited, an unlisted Australian exploration company with a portfolio of copper, gold, zinc, silver, and nickel assets spanning Canada and Western Australia. This acquisition is set to significantly enhance Eastern Metals’ asset base and exploration potential, marking a pivotal step in the company’s strategic evolution.
The centerpiece of Raptor’s portfolio is the Chester Project in New Brunswick, Canada, which boasts a JORC (2012) Mineral Resource Estimate of 6.68 million tonnes at 1.092% copper. This resource, coupled with promising untested extensions, positions the project as a compelling copper opportunity in a Tier 1 mining jurisdiction.
Funding the Next Phase
To support the exploration and working capital requirements following the acquisition, Eastern Metals plans a capital raising between $4.5 million and $5 million. This fundraising effort, priced at $0.02 per share, is designed to facilitate the company’s reinstatement to trading on the ASX and to finance aggressive exploration programs across the newly acquired projects.
The capital raise will be complemented by a consolidation of shares on a 2-for-1 basis, aiming to streamline the capital structure ahead of the company’s rebranding to Raptor Metals Limited, subject to shareholder approval.
Board and Leadership Changes
Post-acquisition, Raptor will nominate Brett Wallace and Adam Sierakowski to the Eastern Metals board, with Ian White remaining as a Non-Executive Director. Existing directors Gregory Barry Starr and Mark Dugmore will step down. Brett Wallace, a geoscience professional and lawyer with over 20 years’ experience, will take the helm as Managing Director, bringing a blend of technical and legal expertise critical for advancing the company’s exploration agenda.
Complementary Assets and Strategic Focus
Alongside Chester, the acquisition includes the Turgeon Project in Canada and the Emu Lake Project in Western Australia, both prospective for copper and other base metals. These assets complement Eastern Metals’ existing projects in the Northern Territory and New South Wales, including the Cobar and Arunta projects. Notably, the company has announced the proposed sale of the Cobar Project, signaling a strategic focus on copper and gold exploration.
The transaction is unanimously recommended by the Eastern Metals board, with Raptor’s directors also supporting the deal in the absence of a superior proposal. The acquisition is contingent on shareholder and regulatory approvals, as well as successful completion of the capital raising.
Regulatory and Market Considerations
Eastern Metals has secured in-principle waivers from the ASX to undertake the capital raising at a price below the usual 20-cent minimum, reflecting the company’s recent trading history and the commercial realities of the transaction. The company is currently suspended from trading pending re-compliance with ASX listing rules, with reinstatement expected following completion of the acquisition and capital raise.
Extensive historical exploration data and mineral resource estimates have been disclosed for the key projects, providing a solid foundation for the company’s planned exploration programs, which include infill and extension drilling, geophysical surveys, and metallurgical testing.
Bottom Line?
With the Raptor acquisition set to reshape its portfolio, Eastern Metals is poised for a copper-gold renaissance; but execution risks and market conditions will be critical to watch.
Questions in the middle?
- Will Eastern Metals successfully complete the capital raising to fund exploration?
- How will the integration of Raptor’s assets and management impact operational execution?
- What are the timelines and milestones for drilling and resource upgrades at the Chester and Turgeon projects?
