Felix Gold (ASX:FXG) will use $7.25 million raised in a placement to advance permitting and economic studies at its Treasure Creek Antimony Project in Alaska, US, and a proposed Frontier refinery.
The company received firm commitments for a two-tranche placement at $0.12 per share, above its initial $6.5 million target.
Demand came from existing shareholders and institutional and sophisticated investors in Australia, Europe, and North America. Felix also accepted oversubscriptions within its available placement capacity.
The issue price is a 14.3% discount to the last closing price and five-day volume-weighted average price of $0.14.
Tranche one covers 41.25 million shares to raise about $4.95 million under existing capacity, with settlement due on 11 November.
Meanwhile, tranche two covers around 19.17 million shares to raise about $2.3 million. This includes $2 million from the largest shareholder, MDF Global (11.4%), and $300,000 from directors, subject to shareholder approval.
Shares on issue will rise from 516.3 million to 576.8 million should both tranches complete.
A share purchase plan (SPP) will raise up to $1 million (before costs) at the same price. Eligible shareholders with a registered address in Australia or New Zealand at 7pm (AEDT) on 3 November can apply for up to $30,000 each, without brokerage.
The SPP is not underwritten, and the board may accept oversubscriptions or scale back applications. The offer booklet is due on or about 13 November, and the SPP closes on 4 December.
Where the money goes
The placement, together with $1.3 million of unaudited cash at 30 September, gives the company $8.55 million to allocate.
One of the largest allocations, $1.8 million, covers Treasure Creek mine permitting and an economic study. A further $1.3 million goes to Frontier refinery site selection, permitting, an economic study, and negotiating a potential US Department of Energy (DOE) award.
The third allocation of $1.8 million will fund 2026 drilling results, an updated gold mineral resource estimate, and antimony resource definition. Assays are pending for 73 of 80 holes at Treasure Creek.
Executive Director Joseph Webb says the raise will carry the mine and refinery plans through their next milestones.
“It is the same strategy: US ore to US metal. This placement funds the delivery of that work’s outcomes,” Webb notes.
Felix Gold is the largest landholder in Alaska’s Fairbanks Mining District, about 30km by road from Kinross Gold’s (TSX:K) Fort Knox mill. Treasure Creek sits on State of Alaska land, which the company expects to shorten permitting timeframes.
Test work on grab samples returned a peak concentrate grade of 74% antimony — above the 70% minimum of US military specifications. However, the samples came from ‘high-grade’ zones and do not necessarily represent average grades.
Felix Gold holds no antimony mineral resource or ore reserve and has not completed a JORC-compliant economic study.
Laboratory assays and the final refining stage of the pilot plant are outstanding, and no commercial-specification metal has been produced.
DOE selection for award negotiations does not commit the agency to issue an award or provide funding.
Felix Gold is an Australian explorer advancing a portfolio of gold and antimony assets in Alaska’s Fairbanks Mining District, including the NE Fairbanks and Grant Mine projects.
Write to JC Villarba at Mining.com.au
Images: Felix Gold
