Eclipse Completes $2 Million Placement

Eclipse Metals Ltd (ASX: EPM) (Eclipse or the Company) is pleased to announce it has received firm commitments from sophisticated investors to raise $2 million before costs via a placement (Placement) of 100 million shares at an issue price of $0.02 per share (Placement Shares).

Highlights

• Completion of an oversubscribed Placement to raise $2 million at a Placement price of $0.02 per share supported by a combination of existing and new investors.
• Placement proceeds will be applied to upcoming field activities as the Company prepares to mobilise contractors to begin a drilling program at the Grønnedal Rare Earth Elements (REE) prospect.
• Social and Environmental Impact assessments underway in anticipation of future work programs following the 2022 exploration drilling program.

Subscribers to the Placement will be offered one (1) free attaching option exercisable at $0.05 expiring 17 September 2024 (Placement Options) for every one subscribed Placement Share. The Company will seek quotation of the Placement Options, being a total of 100 million options.

Allotment of the Placement Shares is expected to occur on or around 2 September 2022. The funds raised from the Placement will be used primarily to fund up-coming drilling campaigns at the at the Grønnedal prospect in Greenland following approval by Greenland’s Minerals Licenses and Safety Authority (MRSA) of the Company’s 2022 proposal to conduct field activities.

The Placement was managed by Ignite Equity Pty Ltd (Ignite). Ignite is a boutique corporate advisory firm specialising in funding and acting as corner investor for small-cap ASX listed Companies.

Greg Lowe, investor and Director of Ignite said, “We are thrilled to back Carl and his team on their Maiden drilling campaign for rare earth elements in Greenland. There is a huge supply/demand imbalance for these highly sought-after minerals.”

Executive Chairman Carl Popal said “We’re delighted to work with Greg and the Ignite team on this raising as preparations for the upcoming drilling at the Grønnedal prospect enter the final stages. We look forward to providing updates in the coming weeks as this maiden program progresses.”

A total of 100,000,000 Placement Shares will be issued pursuant to the Company’s existing Listing Rule 7.1A placement capacity. In addition, the 100 million Placement and 7.5 million Broker Options will be issued pursuant to Listing Rule 7.1.

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