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Emmerson Resources implements cost-saving measures in response to COVID-19

Directors, management and staff fees and salaries have been reduced by up to 50% “to help weather the challenging economic conditions”.

Emmerson Resources Ltd - Emmerson Resources implements cost saving measures in response to COVID-19
A new company secretary has been appointed

Emmerson Resources Limited (ASX:ERM) has implemented cost-saving measures in response to the impact of COVID-19 on operations with directors, management and staff reducing fees and salaries by up to 50%.

The pandemic has resulted in the company ceasing exploration activities at its projects in the Northern Territory and in Central West NSW, including high impact drilling planned for the Kiola project.

Emmerson managing director Rob Bills said: “We have prudently implemented cost-saving measures across our business to help weather the challenging economic conditions we currently face.”

Incentive Option Scheme

The company intends to issue options to employees and directors under its Incentive Option Scheme.

Directors consider that options provide an effective form of compensation that allows the company to conserve cash and incentivise employees.

The options offered to employees will have an exercise price of 14 cents, a premium of 70% to last week’s VWAP, and will expire on December 31, 2023.

Options to be issued to directors, including the managing director, will be subject to approval of shareholders at the company’s next general meeting in accordance with ASX Listing Rules.

New company secretary

Emmerson has also appointed Paul Mason as company secretary following the resignation of Trevor Verran effective from April 6, 2020.

Mason is a Chartered Accountant and has more than 20 years’ experience in finance and accounting within the resources industry.

He was formerly company secretary and group accounting manager at Kingsgate Consolidated Ltd and prior to that company secretary and financial controller at Catalpa Resources Ltd, which is now Evolution Mining Ltd (ASX:EVN).

The board has acknowledged the valuable contribution Trevor Verran has made during his tenure and wished him all the very best in his future endeavours.

Drilling co-funding grant

Last week the company secured a drilling co-funding grant from the NSW Government for its Kiola and Kadungle projects in NSW.

The grant will reduce the company’s direct drilling costs at Kadungle by 50% or about $101,000 and at Kiola by 50% or $83,000.

Bills said: “Emmerson is well placed to emerge in a very strong position once this COVID-19 crisis allows field activities to recommence.

“We have exceptional ground positions in one of Australia’s highest-grade gold provinces at Tennant Creek plus a suite of early mover assets in some of the hottest exploration districts in NSW.”

Quick facts: Emmerson Resources Ltd

Price: 0.11 AUD

ASX:ERM
Market: ASX
Market Cap: $50.61 m
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