Updated: 17/07/17 : 04:40:00
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Mining company raising funds for zinc prospecting in Sligo

Minerals explorer Erris Resources is looking to float in order to raise funds for drilling a zinc prospect in Sligo.

The London-based company is plotting a potential listing on that city's AIM market, raising as much as 5m (5.7m).

Potential investors have been told that the company is looking to have its shares admitted to trading as early as August. Erris declined to comment.

The prospect is at Abbeytown in Co Sligo and was the site of a lead mine in the 1950s and 1960s.

Erris believes that zinc, lead, silver and copper are at the site, which it labels historically overlooked. Drilling work that the company has undertaken indicates that there is a potential new mineral zone at the site.

It has presented investors with two scenarios; one, in which it raises 3.5m, releasing just over 1.5m for work at Abbeytown, and another, where it raises 5m, with more than 2.8m for Abbeytown.

A 5m fundraise would give the company a market capitalisation of 9.7m on a fully diluted basis - meaning that share options are included in the calculation of the company's value, as well as shares.

Independent.ie