Eagle Mountain Mining has launched a Placement Options Offer for 61.3 million options attaching to recent placement shares, potentially raising $1.23 million upon exercise. The offer supports ongoing exploration and strategic initiatives in Arizona copper projects.
- Offer of 61.3 million Placement Options exercisable at $0.02 each
- Options attach to shares issued in recent $1.66 million placement
- Potential $1.23 million raised if all options exercised by November 2028
- Company holds key copper projects in Arizona – Silver Mountain and Wedgetail
- Strategic option agreement and potential JV with Nittetsu Mining underway
Placement Options Offer Details
Eagle Mountain Mining Limited (ASX – EM2) has issued a prospectus dated 20 January 2026, inviting placement participants to apply for up to 61.3 million Placement Options. These options are offered on a one-for-three basis attaching to shares issued in a recent placement that raised approximately $1.66 million. The options carry an exercise price of $0.02 each and expire on 30 November 2028.
The offer is exclusive to placement participants and is designed to facilitate secondary trading of shares issued upon exercise of the options. If all options are exercised, Eagle Mountain Mining stands to raise an additional $1.23 million, which it intends to apply towards general working capital requirements.
Strategic Focus on Arizona Copper Projects
The company’s core assets are two copper projects in Arizona, USA – the Silver Mountain Project and the Wedgetail Project. Silver Mountain is positioned within a geologically prospective belt known for world-class porphyry copper deposits. Recent exploration has identified multiple geophysical anomalies and high-grade mineralisation, positioning the project as a compelling target for further drilling and potential joint ventures.
Meanwhile, the Wedgetail Project surrounds the former Oracle Ridge Mine. After a strategic review in 2024, Eagle Mountain Mining chose not to extend its lease rights but has since entered into a binding 12-month option agreement to reacquire surface and mineral rights from Marble Mountain Ventures LLC. This move preserves the company’s strategic landholding and exploration data, while opening the door for renewed development opportunities.
Potential Joint Venture with Nittetsu Mining
Adding to its strategic initiatives, Eagle Mountain Mining has received a non-binding indicative offer from Nittetsu Mining Co., Ltd, a mid-tier Japanese mining company. Nittetsu proposes to earn an 80% interest in a joint venture covering the Oracle Ridge and Wedgetail projects by investing US$20 million over four years. Nittetsu would manage the joint venture, with Eagle Mountain Mining free-carried until Nittetsu’s contributions reach the agreed threshold.
This potential partnership, subject to due diligence and board approvals, could provide significant capital and operational expertise to advance the projects. However, the non-binding nature of the offer means there is no certainty it will proceed to a binding agreement.
Capital Structure and Risk Considerations
The Placement Options Offer will not immediately dilute existing shareholders but could dilute interests by approximately 4.26% if all options are exercised. The company’s directors hold substantial shareholdings but are not participating in this offer. The prospectus outlines a comprehensive range of risks, including exploration uncertainties, funding requirements, regulatory compliance, environmental considerations, and commodity price volatility.
Financially, the company reported a loss of over $15 million for the year ended 30 June 2025 and has a material uncertainty regarding its ability to continue as a going concern without further funding. The successful exercise of Placement Options and potential joint venture funding are critical to supporting ongoing operations and exploration activities.
Offer Timetable and Next Steps
The offer opened on 20 January 2026 and closes at 5 – 00pm WST on 22 January 2026, with the company reserving the right to extend or close early. Placement participants must apply using the provided application forms. Investors and analysts will be watching closely for the uptake of these options and progress on the Nittetsu joint venture negotiations, which could significantly influence the company’s development trajectory.
Bottom Line?
Eagle Mountain’s Placement Options Offer and strategic moves set the stage for a pivotal year in advancing its Arizona copper assets amid funding and market challenges.
Questions in the middle?
- Will Eagle Mountain secure a binding joint venture agreement with Nittetsu Mining?
- How will the company manage funding needs beyond the Placement Options exercise proceeds?
- What exploration results can be expected from Silver Mountain and Wedgetail projects in the near term?