Shares in Energy & Minerals Australia Limited (ASX:EMA) jumped almost 20 per cent yesterday after revealing it’s received a capital injection from mining billionaire Andrew Forrest.
Mr Forrest is the founder of Pilbara focused iron ore miner Fortescue Metals Group Limited
(ASX:FMG) and will pour $12 million into Energy & Minerals Australia.
Energy & Minerals Australia is a West Australian uranium mining company focused on finishing the feasibility study on its Mulga Rock Project and targeting production by the end of 2016.
Mr Forrest says his investment is a strong vote of confidence in the executive management team of the company’s Managing Director & CEO Mike Young and Executive Director and COO Julian Tapp.
As part of the latest announcement Energy & Minerals Australia also advised it has eliminated $24.5 million of its debt which will be converted into equity for its lenders. Shares in Energy & Minerals Australia jumped 19.57 per cent following the announcement to close at $0.055.
Energy & Minerals Australia reported a net loss of $3.96 million in the first half of the 2014 financial year.
