Erris Resources raises £0.33m to advance Loch Tay project

Europe-focussed mineral exploration company Erris Resources has raised £0.33m, before expenses, through a placing of 7,767,357 new ordinary shares at a price of 4.25p each, it announced on Tuesday.

The AIM-traded firm said the net proceeds would primarily be used to advance high-grade gold targets at its Loch Tay Gold Project in Scotland, once the Covid-19 coronavirus restrictions have been lifted.

It said the proposed work included a major soil sampling campaign over the Lead Trial-Dunan and Glen Almond target areas, with ongoing licence-wide sampling and geological mapping.

Those works were intended to finalise the selection of prospective drill targets for testing before year-end, subject to timing on the easing of Covid-19 restrictions.

Erris and its Loch Tay option agreement partner, GreenOre, had agreed to temporarily halt the earn-in period, so no time would be lost as a result of the lockdown measures.

From the restart of work, Erris would have three years and eight months remaining on the earn-in period.

“Securing these funds from new and existing shareholders is an endorsement of the opportunity that the Loch Tay Project offers,” said chief executive officer David Hall.

“The project area is highly prospective and lies within the Grampian Gold Belt, which hosts significant gold deposits such as Curraghinalt and Cononish.

“We are delighted to have the opportunity to rapidly develop the Project with this additional funding that will allow us to define drill targets for early testing.”

At 1505 BST, shares in Erris Resources were down 5.71% at 4.62p.