ERO Mining (ASX: ERO) plans to advance exploration and development at the company’s wholly owned projects using raised funds of up to A$1.88 million from a non-renounceable rights issue.
The company will offer shareholders a one for five non-renounceable rights issue of 69.7 million shares at A$0.027, as at the record date on 30 June 2011.
The funding will go towards the acceleration of exploration at the Wertaloona Lithium Project, beyond the first round drilling of two fully cored reference drill holes.
The exploration project is part of two exploration licences acquired by ERO as part of its successful acquisition of unlisted mineral explorer, South East Energy Limited.
The drilling program comprises two fully cored drillholes totalling approximately 300 metres and down hole gamma surveys. The drillholes are located in close proximity to two holes drilled by Comalco in the 1970s where significant lithium levels were encountered.
ERO has submitted samples for the first drill hole to Genalysis Intertek in Adelaide, South Australia, and expects test results sometime next month.
Also, the company plans to advance development at the Tanami Project northwest of Alice Springs where high priority gold and uranium exploration targets have been identified within the recently granted Suplejack and Talbots tenements.
ERO has scheduled maiden field work to begin next month with a field crew mobilised to the area to conduct soil and rock chip sampling programs.
Existing option holders will need to exercise their options and be a registered holder of shares on 30 June 2011 if they wish to receive an entitlement to participate in the rights issue.