Big cash boost for Eagle Mountain

EAGLE Mountain Mining is raising A$16 million in new equity for its copper play in Arizona as resource expansion drilling delivers both mineralisation and potential at Western Talon.
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The explorer believes there is 500m of strike potential between hits of 91.5m grading 1.4% copper and 29m at 2.3% copper.

The true width of the mineralisation recently drilled is unknown.

Two diamond core rigs are in action at Western Talon, with 16 assay results pending.

Western Talon is part the Oracle Ridge exploration project and located near the previously operated namesake mine.

A third rig is testing the Golden Eagle gold prospect 2km from the Oracle Ridge portals.

Meanwhile, the A$16 million being raised is pricing new shares at 65c each, with investors involved undisclosed aside from managing director Charles Bass - who will invest $1 million subject to approval.

Eagle Mountain started the September quarter with $9 million cash.

Shares in Eagle Mountain were up 7% to 77c in morning trade, capitalising the company at $156.5 million.

The stock was at levels around 30c 12 months ago and around $1.30 in late April.