Energia gets green light for project funding

Energia Minerals’ shares have jumped by nearly 30 per cent on the news that Euroz Securities and new investors had completed due diligence on its Gorno zinc project and confirmed that they would proceed with the $8.15 million funding package, which was announced last week.

Energia said the funds would be used to fast-track the evaluation and development of the Gorno project, near Bergamo in north Italy.

The company said it had already secured placement commitments for the initial $6 million placement of 240 million shares, valued at 2.5 cents per share.

“These commitments include entities associated with prominent Perth-based resource investor Alexander Burns who will, subject to shareholder approval, become a cornerstone investor by subscribing for 100 million shares under the placement resulting in a post-placement shareholding of about 19.31 per cent,” Energia said in a statement.

Mr Burns is a candidate for the position of executive chairman of the company.

Energia shares last traded at 4.4 cents per share at 1:15pm.