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ACN 621 541 204
Eagle Mountain Mining Limited (“EMM” or “Eagle Mountain”) was
incorporated in 2017 with the purpose of acquiring and potentially
ASX-listing the Arizona, USA copper-gold exploration project
(“Project”) owned by a Bass family entity, the Silver Mountain Mining
Trust (“Silver Mountain” or “SMM”).
The Project was first identified by non-executive director, Charles
Bass in 2011. In 2013, Silver Mountain signed 3 separate option
agreements covering the entire 6 kilometres strike length of the
main Project. The options were exercised and this was the first
time in over 100 years that all patented claims were consolidated
under one owner.
The highly qualified Board is led by Mr Rick Crabb as Chairman.
Non-Executive Directors include Mr Charles Bass and Mr Roger
Port. The Board plans to announce the appointment of a high
powered Chief Executive Officer in the near future.
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- Arizona is an attractive, low political risk mining jurisdiction
and has been a long-time copper producer.
- Arizona hosts several world-class active and historical copper
mines.
- The Project is located along the Laramide Arc, a key geologic
feature that controls several significant copper deposits in
Arizona and gold deposits in neighbouring Nevada.
- A +6 kilometres long strike of a gossanous zone (the “Pacific
Horizon”) runs through the patented claims.
- Several historical high-grade copper mines were developed
along the Pacific Horizon from about 1890 to 1910. The
mines closed down when the railroad tracks receiving the
ore were scrapped towards the start of World War 1.
- Waste dump samples assayed as high as 11.1% Cu, 10.7 g/t
Au and 251 g/t Ag.
- Patented claims grant both surface and mineral rights to the
owner, with no royalties or other conditions attached. The
owner has a “right to take”.
- Except for very limited exploration in the 1960’s & 70’s and
mapping and sampling by Kennecott in the early 1990’s,
there has never been extensive exploration of the full area.
- SMM has flown a large airborne geophysical survey and
staked a much larger area on the basis of the results. SMM
has also conducted ground geophysical surveys over several
areas, conducted geochemical and structural surveys, and
mapped and sampled the broad area of tenements now
held.
- Some previously unexplored areas yielded samples assaying
up to 86 g/t Au.
5
1. sits within a NE-SW striking zone of
Proterozoic rocks and hosts the historic high-grade copper
mines. Copper, gold and silver-bearing breccias were
believed to be the target of the historic miners. Grades from
dump samples return copper values of up to 11% Cu, and
several samples show +5g/t Au. Drilling around the old mine
shafts and adits will be an early focus for EMM.
2. area hosts NE-SW striking sulphide-bearing
quartz veins which assay up to 80 g/t Au in select samples.
These veins sit within a 1500m X 300m corridor that is
subparallel to the NW-SE regional fault. The historic Silver
Dollar mine operated here in the 1860’s, and there has been
no modern exploration until SMM. We consider this area
prospective for vein-hosted gold and porphyry copper
mineralisation.
3. area sits at the southern extension of the
Pacific Horizon. There has been no known historical mining
in this area and SMM is the first to explore it. Anomalous
copper values are widespread and gold values up to 7.6 g/t
Au have been sampled from mafic dykes. EMM believes this
area prospective for detachment style gold and copper
mineralisation.
6
In preparation for the larger 2-year exploration program, it is
proposed that a portion of funds raised from seed capital will be
spent between now and March 2018 on:
- Road improvement – access to the exploration areas are via
all terrain vehicles along narrow, rocky tracks and
mountainous roads. Some areas are difficult, slow and
dangerous, requiring regular maintenance.
- Continuing exploration mapping and sampling at Scarlett and
Red Mule.
- Ground magnetometer and gravity geophysical surveys in
the Scarlett and/or Red Mule area.
- Logistics preparation of potential drill sites along the Pacific
Horizon.
- Setting up an Arizona office and hiring key local personnel.
- Site visit and detailed planning of longer term exploration.
7
This Information Memorandum (IM) has been prepared by Eagle
Mountain Mining Limited (ACN 621 541 204). It is not a prospectus or
other disclosure document and does not contain all of the information
which would be found in such documents or which may be required by an
investor to make a decision regarding an investment in Eagle Mountain.
This IM has not and will not be lodged with the Australian Securities and
Investments Commission (ASIC).
This IM is specifically provided to the receiving party (Recipient) for the
purpose of reviewing the investment opportunity in Eagle Mountain. Any
information contained in this IM, or subsequently provided to the
Recipient whether orally or in writing by or on behalf of Eagle Mountain or
its officers, employees and advisers, is provided to the Recipient on the
terms and conditions set out in this IM.
This IM is provided personally and in confidence to a restricted number of
Recipients all of whom are persons within Australia who are entitled to be
offered and issued securities pursuant to section 708 of the Corporations
Act 2001 (Cth) (Corporations Act) without the need for a prospectus or
other disclosure document (Eligible Investors).
The information contained in this IM is confidential and proprietary to
Eagle Mountain, and has been prepared to assist the Recipient in
evaluating a potential investment in Eagle Mountain. This IM must not to
be copied or disseminated in any form to any other person without the
prior written consent of Eagle Mountain.
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By retaining this IM, a Recipient acknowledges and represents to Eagle
Mountain that it has read, understood and accepted the terms of this IM.
If the Recipient does not accept these terms, it must immediately return
this IM to Eagle Mountain.
This IM has been prepared solely for information purposes to assist
potential investors in deciding whether to further investigate a possible
subscription for Shares in Eagle Mountain, and may only be used for that
purpose. This IM is dated 27 November 2017 and has been prepared by
Eagle Mountain based on the information available to it at that date.
This IM is not intended to provide the sole or principal basis of any
investment or credit decision or any other risk evaluation. If you are
considering subscribing for Shares in Eagle Mountain, you should seek
appropriate advice and conduct any further investigations that you
consider necessary or desirable.
This IM contains forward-looking statements which incorporate an
element of uncertainty or risk, such as ‘intends’, ‘may’, ‘could’, ‘believes’,
‘estimates’, ‘targets’ or ‘expects’. These statements have been prepared
with all reasonable care and attention, based on an evaluation of current
economic and operating conditions, as well as assumptions regarding
future events. These events are, as at the date of this IM, expected to take
place, but there cannot be any guarantee that such events will occur as
anticipated or at all given that many of the events are outside Eagle
Mountain’s control. The stated events may differ materially from results
ultimately achieved.
Accordingly, Eagle Mountain and its officers, employees and advisers,
cannot and do not give any assurance that the results, performance or
achievements expressed or implied by the forward-looking statements
contained in this IM will actually occur. Further, other than as required by
law, Eagle Mountain may not update or revise any forward-looking
statement if events subsequently occur or information subsequently
becomes available that affects the original forward-looking statement.
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Eagle Mountain has not authorised any person to give any information or
to make any representation in connection with the Capital Raising which is
not contained in this IM. No information or representation which is not
contained in this document may be relied upon as having been
authorised in connection with the Capital Raising.
Although Eagle Mountain has used due care and diligence in the
preparation of this IM, to the extent permitted by law, no representation
or warranty is made by Eagle Mountain nor any of its officers, employees
or advisers, as to the accuracy or completeness of the information in this
IM.
No information contained in this IM or any other written or oral
communication transmitted or made available to the Recipient shall be
relied upon as a promise or representation and no representation or
warranty is made as to the accuracy or attainability of any estimates,
forecasts or projections set out in this IM. No liability will attach to Eagle
Mountain, or its officers, employees or advisers, with respect to any such
information, estimates, forecasts or projections.
You should read this IM in its entirety. If, after reading this IM, you have
any questions, you should contact Peloton Capital, Eagle Mountain’s
broker and corporate advisor, on 02 8651 7800.
To the extent permitted by law, Eagle Mountain does not accept any
liability for any loss or damage suffered or incurred by the Recipient or
any other person or entity however caused (including negligence) relating
in any way to this IM including, without limitation, the information
contained within it, any errors or omissions however caused, or its
accuracy or reliability.
10
The information in this IM may not be complete, may be changed,
modified or amended at any time by Eagle Mountain, and is not intended
to, and does not, constitute representations and warranties of Eagle
Mountain.
Neither Eagle Mountain, nor its officers, employees or advisers, intends to
update this IM, or accepts any obligation to provide the Recipient with
access to additional information or to correct any inaccuracies that may
become apparent in the IM or in any other information that may be made
available concerning Eagle Mountain.
The business of Eagle Mountain has only recently been formed, is a ‘start-
up operation’ and has not had any significant operating history on which
to base an evaluation of its business and prospects. Therefore, the
information contained in this IM is inherently speculative.
This IM does not represent a recommendation to purchase the Shares
offered by Eagle Mountain. Any decision to invest in Eagle Mountain must
be based on your own circumstances, investigations, analysis and
assessment of Eagle Mountain’s operations and prospects. You should
make your own independent assessment of the merits of subscribing for
Shares, consult your own professional advisors and make such further
investigations you consider necessary. You are cautioned that any
investment in Eagle Mountain may involve a high degree of risk.
Nothing in this IM should be construed as financial product advice,
whether personal or general, for the purposes of section 766B of the
Corporations Act. This IM does not involve or imply a recommendation or
a statement of opinion in respect of whether to buy, sell or hold a
financial product.
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The subscription for, and disposal of, Shares will have tax consequences
which will differ depending upon the individual financial affairs of each
potential investor. You are urged to obtain independent financial advice
about the consequences of subscribing for Shares from a taxation
viewpoint and generally. To the maximum extent permitted by law, Eagle
Mountain, and its officers, employees and advisers, do not accept any
liability and responsibility with respect to the taxation consequences of
subscribing for and being issued Shares.
This IM does not constitute an offer of any Shares in any jurisdiction
where, or to any person to whom, it would not be lawful to issue the IM or
undertake the Capital Raising. It is the responsibility of any potential
investor who is resident outside Australia to ensure compliance with all
laws of any country relevant to receiving Shares under the Capital Raising,
and any such investor should consult their professional advisers as to
whether any government or other consents are required, or whether any
formalities need to be observed to enable them to be issued Shares.
Eagle Mountain has not taken any action to register or qualify the Shares
or the Capital Raising, or otherwise permit an offer of securities in Eagle
Mountain, in any jurisdiction outside of Australia.
All currency amounts in this IM are in Australian Dollars unless specified
otherwise.
If you qualify as an Eligible Investor and wish to subscribe for Shares in
Eagle Mountain, please contact Peloton Capital, Eagle Mountain’s broker
and corporate advisor, on 02 8651 7800.
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Eagle Mountain proposes to undertake a seed capital raising to raise
$1,500,000 (before costs) by the issue of 15,000,000 fully paid ordinary
shares (Shares) in the capital of Eagle Mountain, at an issue price of $0.10
each, to Eligible Investors (Capital Raising).
Eagle Mountain reserves the right to decide whether or not to make offers
and to issue Shares to any persons under the Capital Raising in its
absolute discretion.
Fully subscribed, seed investors will collectively own 28.6% of Eagle
Mountain with Charles Bass (via an associated entity) controlling the
balance of 71.4%.
The funds from the Capital Raising will be used to conduct exploration on
the Project including preparation for drilling activities.
Funds will also be deployed to establish exploration and administrative
infrastructure including the planned recruitment of an experienced high
powered Chief Executive Officer and to meet due diligence costs
associated with a planned Initial Public Offering of Eagle Mountain’s
shares.
Costs associated with this Capital Raising are included in the IPO costs
described below.
13
Specifically, the proposed budgeted expenditure through to 31 March
2018 includes:
Item $
Exploration
Roadworks 75,000
Mapping/Sampling 70,000
Geophysics 50,000
Drill Preparation 50,000
Exploration Office 12,000
Exploration Employees 60,000
Site Visit/Planning 30,000
Capex Office Perth 300,000
Office Arizona 30,000
Corporate/Admin
Admin 62,000
Employees 115,000
Corporate 15,000
Occupancy 13,000
Website 5,000
Software 16,000
IPO Due diligence and
prospectus preparation 527,000
Total 1,430,000 Working Capital 70,000
The intended use of funds and planned activities outlined in the table
above are current at the date of this IM. These may be altered depending
upon any intervening events or changes in Eagle Mountain’s
circumstances.
The Directors of Eagle Mountain reserve the right to amend the way funds
are used or applied.
In addition to the Capital Raising described in this IM, Eagle Mountain
plans to undertake further fund raising activities in the first half of 2018
which will be necessary to execute Eagle Mountain’s strategy over the
next 2 years.
The proposed outline of planned activities is provided on the next page:
14
15
Eagle Mountain is proposing to enter into an agreement to acquire 100%
of Silver Mountain Mining Pty Ltd which in turn holds 100% of Silver
Mountain Mining LLC (the LLC), an Arizona corporation. Silver Mountain
Mining LLC retains tenure over 100% of the Project.
Silver Mountain Mining Trust (an entity associated with Mr Charles Bass)
currently owns 100% of the fully paid ordinary shares of Eagle Mountain.
Conditional upon the successful raising of $1.5m under the Capital Raising,
Silver Mountain Mining Trust will vend 100% of its equity in Silver Mountain
Mining Pty Ltd to Eagle Mountain. Funds raised pursuant to the Capital
Raising will be held on trust until this condition precedent has been met.
The Eagle Mountain capital structure assuming that the Capital Raising is
fully subscribed would be as follows:
Vendor Fully Paid Shares 37,500,001
Seed Investors 15,000,000
Total 52,500,001
Exercise Price 30c
3-year Maturity 4,500,000
Vendor Options
Exercise Price 20c
5-year Maturity 9,000,000
Board & Management Options
On a fully subscribed basis, the investors participating in the Capital
Raising will collectively own 28.6% of Eagle Mountain’s on an undiluted
basis with Silver Mountain Mining Trust (an entity associated with Mr
Charles Bass) retaining the balance of 71.4%.
16
B. Juris (Hons), LLB, MBA, FAICD
Non-Executive Chairman
Mr Crabb holds degrees of Bachelor of Jurisprudence (Honours), Bachelor
of Laws and Master of Business Administration from the University of
Western Australia. He practised as a solicitor from 1980 to 2004 with
Robinson Cox (now Clayton Utz) and Blakiston & Crabb (now Gilbert +
Tobin) specialising in mining, corporate and commercial law, advised in
relation to numerous project developments in Australia and Africa.
Mr Crabb has since focused on his public company directorships and
investments. He has been involved as a director and strategic
shareholder in a number of successful public companies including
Gasgoyne Gold Mines Ltd and Otto Energy Ltd. He is currently also
Chairman of Paladin Energy Limited (Administrators Appointed) and
director of Thundelarra Ltd.
Mr Crabb was a councillor on the Western Australian Division of the
Australian Institute of Company Directors from 2008 to 2017.
B.Sc. Geology, M.Sc. Mining Engineering/Mineral Processing, FAICD, FAusIMM, FAIG
Founder & Non-Executive Director
Charles completed his B.Sc. in Geology at Michigan Technological
University, followed by a M.Sc in Mining Engineering & Mineral Processing
at Queen’s University, Canada. Between his degrees Charles worked as
Plant Metallurgist at a copper-gold mine in northern Quebec.
Charles joined AMAX Inc, an American mining company in their Head
Office in 1976 and emigrated to Perth in 1978, however he returned to
the U.S. to work in Tuscon, Arizona at the Twin Buttes copper mine.
Charles returned to Australia and established his first company, Metech
Pty Ltd in 1981.
Charles established Eagle Mining Corporation in 1991 with Tony Poli and
was responsible for the deal that led to the discovery of the very
successful Nimary Gold Mine. Eagle Mining Corporation won both
17
Explorer of the Year and then Developer of the Year at Diggers and
Dealers conference and was subject to a hostile takeover in 1997.
Charles then co-founded Aquila Resources Ltd with Tony Poli in 2000 and
helped transition it from a gold explorer to iron ore and coal before it too
was subject to a $1.4 billion takeover in 2014 at the hands of a joint bid
between Baosteel and ASX listed Aurizon.
In 2008 Charles was appointed a Non-Executive Director and then CEO of
a Canadian public unlisted company, Exploration Syndicate Inc. It was in
his position as CEO that he became aware of the Arizona project but the
company was wound up in 2013 before any action could be taken.
Today, Charles is very active in philanthropy and is the Founder and
Chairman of the Centre of Entrepreneurial Research and Innovation, a
charitable organisation working with post-graduate researchers in
fostering a start-up culture for high knowledge and high value industry in
WA.
BA FCA SF Fin FAICD
Non-Executive Director
Roger was a partner of PricewaterhouseCoopers from 1997 to 2016. He
has 30 years experience in financial analysis, company and business
valuations, transaction due diligence and mergers and acquisitions and
led the PricewaterhouseCoopers Perth Deals team from 2009 to 2016. He
jointly led the PwC Australia Deals Energy & Mining industry group for five
years.
Roger is a graduate of Macquarie University and gained a Graduate
Diploma in Applied Finance and Investment from the Securities Institute
of Australia. He is a Fellow of Chartered Accountants Australia and New
Zealand, a Senior Fellow of the Financial Services Institute of Australasia
and a Fellow of the Australian Institute of Company Directors.
Roger is a board member of the Harry Perkins Institute of Medical
Research and Guildford Grammar School Foundation.
18
The Project is located in Yavapai County, Arizona, USA and is situated
approximately 100 kilometres northwest of Phoenix. Access from Phoenix
is via Interstate 17 and an unsealed road to the town of Crown King.
19
The Project encompasses three main areas: Pacific Horizon, Scarlett and
Red Mule. They are located variously between 15 to 25 kilometres from
Crown King.
They are reached via unsealed roads and tracks, requiring access with All
Terrain Vehicles. Travel times from Crown King vary between 1.5 to 2
hours each way.
20
The Pacific Horizon is located within 26 patented mining claims and 208
unpatented mining claims and is 100% owned by the LLC.
The local geology comprises a belt of Proterozoic metamorphic schists with
a northeast-southwest strike. Gossanous material (Pacific Horizon)
outcrops over 6 kilometres along the patented claims. Latite porphyry
dykes intrude the Proterozoic sequence. Minor siderite-calcite-quartz
breccias outcrop along the Pacific Horizon.
Copper, gold and silver-bearing breccias occur on dumps near the
entrance of historical shafts and tunnels and are interpreted to be the
focus of historical mining in the area. Eagle Mountain sampling of dump
material returned copper values up to 11% Cu.
Anomalous copper, gold and silver and other base metals values are
widespread along the horizon.
21
Multiple historical mines were developed along this horizon between 1890
and the advent of World War 11 including Number 10, Copper Ash, Buffalo,
Wellington and Pacific mines.
While detailed production records are not available, ore from the Pacific
Mine averaged 10% copper and was carted uphill to the Crown King railway
for shipping to smelters2. Recent sampling of historical waste dumps
returned high-grade copper, gold and silver mineralisation at several
locations along the horizon.
In the 1960s and 1970s various companies completed limited ground
geophysics, mapping, drilling and sampling programs. Kennecott mapped
and partially sampled the Pacific Horizon in the early 1990s but ceased
activity on the project when their focus changed from looking for high grade
copper deposits to large porphyry copper deposits.
1 Arizona Mineral Surveys n°2274, 2594 and 2803 2 Price M.E. 1976, Prefeasibility Study on the KOOZ, Inc. mining claims in the Tiger Mining
District, Yavapai County, AZ (available from: http://minedata.azgs.az.gov/report/pacific)
22
Since 2013, exploration at Pacific Horizon has included acquisition and
staking of mining claims, verification and compilation of historical data,
mapping, sampling and trenching and extensive geophysical programs
including helicopter-borne magnetic and electromagnetic,
Induced Polarization / Resistivity surveys. Geochemical and structural
studies were also completed to improve the understanding of
mineralisation sources and controls.
Several coincident geological, geochemical and geophysical anomalies
were identified and will be systematically tested in the planned drilling
program.
Eagle Mountain considers the Pacific Horizon to be prospective for breccia-
hosted copper, gold and silver mineralisation with Iron Oxide Copper Gold
(IOCG) affinity and for Volcanogenic Massive Sulphide (VMS) base metals
mineralisation.
Planned drilling will test targets generated in the vicinity of historical
workings and coincident geophysical and geochemical anomalies along the
Pacific Horizon.
23
Scarlett is situated to the west of Pacific Horizon. Following the successful
completion of Eagle Mountain’s acquisition of Silver Mountain Mining Pty
Ltd, the project will be 100% controlled by Eagle Mountain and consists of
133 unpatented mining claims and 3 Arizona State exploration permits.
A northwest-southeast fault divides the Scarlett area into two domains. To
the northeast of the fault, Proterozoic granitoides host a swarm of gold-
bearing quartz veins. To the southwest, Tertiary volcanic rocks overlay a
basal conglomerate unit resting on Proterozoic basement. Latite dykes with
a northeast strike cross the area.
Gold mineralisation up to 80 g/t Au is hosted in the sulphide-bearing
quartz veins. These veins have a northeast-southwest strike occurring
within a 1500 x 300 metre corridor subparallel to the regional fault.
Small scale mining at Scarlett was carried out intermittently between the
1860s and 1950s. The Silver Dollar mine was discovered in the 1860s.
Several historical adits and small workings are scattered throughout the
area. No modern exploration has been reported on the property.
Since 2014, exploration at Scarlett has included staking of unpatented
mining claims and Arizona State exploration permits, reconnaissance
mapping and sampling, helicopter-borne magnetic and electromagnetic
surveys, ground magnetics and Induced Polarization / Resistivity surveys.
Geochemical and structural studies were also completed to improve the
understanding of mineralisation sources and controls.
24
Eagle Mountain considers Scarlett to be prospective for vein-hosted gold
and porphyry copper mineralisation.
As additional work is required to define drilling targets, the exploration
program will focus on additional geophysics (Induced Polarization /
Resistivity, Ground Magnetics, Gravity) and detailed mapping and sampling
of the outcropping gold-bearing veins.
A drilling program will be planned to test the targets generated by this
preparatory exploration work.
25
Red Mule is situated to the south of Scarlett and west of the southern end
of the Pacific Horizon. Following the successful completion of Eagle
Mountain’s acquisition of Silver Mountain Mining Pty Ltd, the project will
be 100% controlled by Eagle Mountain and consists of 2 Arizona State
exploration permits.
Red Mule straddles Proterozoic basement to the northeast and Tertiary
cover to the southwest. The Proterozoic basement is the southern
extension of the Pacific Horizon. Tertiary rocks include a basal
conglomerate with frequent red staining and volcanics. A northwest-
southeast fault system with significant brittle deformation characterises
the local geology. Extensive iron-oxide, clay and sericite alteration occurs
in the fault zones. Anomalous copper values are widespread and high
gold values are encountered in mafic dykes.
No historical exploration or mining activities are known in the area.
Since 2015, exploration at Red Mule has included, mapping, sampling and
trenching and geophysical programs including heli-borne magnetic and
electromagnetic survey. Geochemical and structural studies were also
completed to improve the understanding of mineralisation sources and
controls. Several geochemical anomalies were identified along the fault
system crossing the Red Mule area, including extensive hematite alteration.
Eagle Mountain considers Red Mule to be prospective for detachment-
related gold and copper mineralisation. Additional mapping and sampling
programs are proposed at Red Mule to assess the extent and endowment
of the mineralised structures to be followed by ground geophysics to define
drill targets.
26
There are a number of risk factors potential investors should consider
before deciding whether or not to invest. The potential risk factors include
but are not limited to those listed below.
General economic conditions, introduction of tax reform, new legislation,
movements in interest rates, inflation and currency exchange rates may
have an adverse effect on Eagle Mountain’s exploration, development and
production activities, as well as on its ability to fund those activities.
There is a risk that management of Eagle Mountain will not be able to
implement Eagle Mountain’s growth strategy after completion of the
Capital Raising. The capacity of the management to properly implement
and manage the strategic direction of Eagle Mountain may affect Eagle
Mountain’s financial performance.
The industry in which Eagle Mountain will be involved is subject to global
competition. While Eagle Mountain will undertake all reasonable due
diligence in its business decisions and operations, Eagle Mountain will
have no influence or control over the activities or actions of its
competitors, whose activities or actions may positively or negatively affect
the operating and financial performance of Eagle Mountain’s projects and
business.
Share market conditions may affect Eagle Mountain’s ability to raise
capital in the future regardless of Eagle Mountain’s operating
performance. Share market conditions are affected by many factors such
as: Eagle Mountain’s shares are not listed – could re-draft this to refer to
liquidity and funding risk as follows
27
Eagle Mountain’s shares are not currently listed on any recognised
securities markets. Furthermore Eagle Mountain may be unable to raise
capital on suitable terms or at all in the future regardless of its operating
performance or prospects. The ability to raise capital may be affected by
many factors such as:
- general economic outlook;
- interest rates and inflation rates;
- currency fluctuations;
- commodity price fluctuations;
- changes in investor sentiment toward particular market sectors;
- the demand for, and supply of, capital; and
- terrorism and other hostilities. Neither Eagle Mountain nor its directors warrant the future performance
of Eagle Mountain or any return on an investment in the company.
Eagle Mountain’s capital requirements depend on numerous factors.
Depending on Eagle Mountain’s ability to generate income from its
operations, Eagle Mountain may require further financing in addition to
amounts under the capital raising detailed in this IM. Any additional equity
financing will dilute existing shareholdings, and debt financing, if available,
may involve restrictions on financing and operational activities. If Eagle
Mountain is unable to obtain additional financing as needed, it may be
required to reduce and / or scale back the scope of its operations
The shares offered pursuant to this IM should be considered speculative
due to the nature of Eagle Mountain’s business. There cannot be any
assurance as to payment of dividends, return of capital or the market
value of shares. In particular, the price at which an investor may be able
to trade shares may be above or below the price paid for those shares.
Potential investors must make their own assessment of the likely risks and
determine whether an investment in Eagle Mountain is appropriate
having regard to their own particular circumstances.
The above list of risk factors ought not to be taken as exhaustive of the
risks faced by Eagle Mountain or by investors in Eagle Mountain. The
above factors, and others not specifically referred to above may, in the
future, materially affect the financial performance of Eagle Mountain.