Erris Resources raises £4m to develop zinc assets in Sligo

Mineral exploration company Erris Resources has listed on a sub-market of the London Stock Exchange after raising £4 million to develop a "highly prospective" portfolio of zinc assets in the Republic.

The European focused company will also use the funds to develop gold projects in Sweden.

Erris raised £4 million, before expenses, through a placing of 16 million new ordinary shares on the AIM at a placing price of 25 pence each implying a market cap of £7.8 million on admission.

As part of its programme, the company is to begin exploring a site at Abbeytown, Co Sligo, during the first quarter of 2018. It described the project as a “high grade, shallow, district-scale zinc exploration target in a proven mineral district”.

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It also noted that Ireland “represents a supportive jurisdiction with large scale historic zinc production”.

Erris chief executive Merlin Marr-Johnson said exploration was “the lifeblood of the resource sector” but that in recent years discovery rates have “collapsed” as discretionary spending by mining companies on exploration dried up.

“As primarily a discovery-driven exploration company with a focus on zinc and gold, we aim to delineate resources that contribute to the next generation of mines,” he said.

“To this end, we have a portfolio of highly-prospective mineral assets, an experienced team, and the support of two significant industry partners with strong balance sheets, Osisko Gold Royalties and Centerra.

“These companies have endorsed both our business model and team, and recognise our potential to make commercial discoveries.

“Furthermore, we are operating in a great space, exploring for key commodities in pro-mining regions within low-risk jurisdictions.”