The Equator Resources Ltd (ASX: EQU) share price has enjoyed a very strong 12 months in rising 425% during that time. The micro-cap resources company's share price leapt another 15% this morning after the company left its trading halt to announce the successful raising of an additional $3 million in funding which will go towards funding Equator's cobalt mine in Canada.
Equator also appointed a new Chairman, Mr Paul Matsyek, who has a track record of involvement with junior resource companies, including Galaxy Resources Limited (ASX: GXY), which is now a billion-dollar enterprise.
The recent capital raising takes Equator Resources' total number of shares on issue to 443 million (including escrowed shares) for a total market capitalisation of around $53 million at today's prices. Equator is looking to benefit from surging demand for cobalt in rechargeable batteries for use in electric vehicles:
Today's announcement appears to be a step forward for Equator, although investors should remember that the company is operating a commodity business governed by supply and demand, and there are currently dozens of companies jockeying to take advantage of this booming industry.
As one of the smaller players and with no production yet, Equator Resources looks to be high risk, and is only suitable for a very small part of a well-rounded portfolio.
