Eclipse Acquisition Completion & Issue of Equity

Empire Metals Limited / AIM: EEE / Sector: Natural Resources

22 February 2021

Empire Metals Limited ('Empire' or the 'Company')

Completion of Acquisition of Eclipse Gold Project and Issue of Equity

Empire Metals Limited, the AIM-quoted exploration and resource development company, is pleased to announce the receipt of Ministerial Consent for the transfer of title, being the final condition of closing on the acquisition of a 75% interest in the Eclipse Gold Project, located 55km north-east of Kalgoorlie, Western Australia ('Eclipse' or the 'Project').

Mike Struthers, Director, said: "We are pleased to have now completed the acquisition of a 75% interest in Eclipse. The results to date have been very encouraging and we believe this acquisition will create shareholder value as we continue to assess the potential economic mineralisation and a profitable open pit operation."

Completion and Issue of Equity

The consideration paid consists of AUD$1,000,000 (approximately £550,000) in cash, AUD$500,000 (£277,750) settled via the issue of 7,095,510 new ordinary shares of no-par value at a price of 3.91p (calculated by reference to the 30-day VWAP as at 10 December 2020, being the date of exercise of the Company's option over Eclipse), and the issue of 7,095,510 warrants exercisable at 4.70p (a 20% premium to the 30-day VWAP as at 10 December 2020) for two years. In addition, a finder's fee has been paid to an unrelated party of AUD$500,000 (£277,750) settled via the issue of 7,095,510 new ordinary shares of no-par value at a price of 3.91p (calculated by reference to the 30-day VWAP as at 10 December 2020) and the issue of 7,095,510 warrants exercisable at 4.70p (a 20% premium to the 30-day VWAP as at 10 December 2020) for two years.

Application for Admission

The new shares will rank pari passu in all respects with the existing ordinary shares of no-par value in the capital of the Company.  Application will be made to the London Stock Exchange for the new shares to be admitted to trading on AIM ('Admission').  It is expected that Admission will become effective on or around 25 February 2021. 

Following Admission of the new shares as described above, the issued share capital of the Company will consist of 328,874,381 ordinary shares of no-par value. 328,874,381 represents the total number of voting rights in the Company and may be used by shareholders as the denominator for the calculations by which they can determine if they are required to notify their interest in, or a change to their interest in the Company under the Financial Conduct Authority's Disclosure and Transparency Rules.

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

**ENDS**

For further information please visit www.empiremetals.co.uk  or contact:

About Empire Metals Limited

Empire Metals' primary focus is on the Eclipse Gold Project in Western Australia which produced 954 tonnes @ 24.6 g/t Au for 754.25 oz Au from the Eclipse shaft which operated up to 1910.  In addition to the known mineralisation at and surrounding the Eclipse old workings, recent geophysics and geochemistry work has highlighted further potential mineralisation at two additional targets north-west of Eclipse, the Houdini and Easy prospects.

The Company also has a 50% joint venture in Georgia which covers an area of over 860 sq km and has a 30-year mining licence.  The joint venture covers a variety of targets and projects ranging from greenfield exploration / target definition phase through intermediate target-testing phases to more advanced projects including Kvemo Bolnisi East which is due to advance to Feasibility Study.

The Board continues to evaluate opportunities through which to realise the value of its wider portfolio and reviews further assets which meet the Company's investment criteria.