PNX Metals (ASX:PNX) is raising more than $4 million in equity to help fund exploration and development works at its Northern Territory projects, located in the Pine Creek region some 170km from Darwin.
The company is offering eligible shareholders the opportunity to acquire new shares at $0.003 per share through a 1 new share for every 3 existing shares non-renounceable pro-rata rights issue to raise up to $4.4 million (before costs and expenses).
The issue price represents an approximate 30.1% discount to the volume weighted average market price of PNX shares for the 5 trading days prior to 26 January, and a discount of about 25% to the company’s last closing price of $0.004 on 25 January.
Proceeds of the capital raising will be used to continue near-mine and regional exploration, and development activities at PNX’s Fountain Head gold and Hayes Creek zinc-gold-silver projects.
The offer has been lodged with the ASX today (30 January) and an offer memorandum will be sent to eligible shareholders on 7 February 2023.
Existing shareholders, including DELPHI Unternehmensberatung Aktiengesellschaft, have provided a firm commitment to participate in the Offer of $2.1 million.
PNX says this significant ongoing support is a strong endorsement of the company’s aim to sequentially develop its 100% owned Fountain Head gold and Hayes Creek zinc-gold-silver projects.
Addressing the equity raise, PNX Managing Director James Fox says: “We look forward to continuing to increase the resource base through near-mine and regional exploration, and updating development studies with the results of integrated project synergies, test-work and flowsheet optimisation.
“We look forward to continuing to increase the resource base through near-mine and regional exploration”
The pending approval of the Fountain head EIS will be a significant milestone and clears the way forward to submit operational Mine Management Plans and commence early site activities. Assessment of potential consolidation opportunities will continue where there is strong support for project financing, improved margins and scale potential.
We look forward to continuing to de-risk the projects, and delivering on the potential for the Fountain Head and Hayes Creek to create significant value for the company’s shareholders.”
The Fountain Head Environmental Impact Statement approval is pending, and receipt of this milestone approval will allow the PNX to submit (sequentially) operational Mine Management Plans (MMP) for the newly acquired Mt Porter, and Glencoe and Fountain Head gold projects.
Technical studies for the Hayes Creek Environmental Impact Statement are ongoing and will be substantially advanced over the next 12-months.
The company will also continue to identify and assess opportunities consistent with PNX’s strategy to consolidate nearby projects which host existing gold, silver or base metals mineral resources and have significant exploration upside to support its proposed NT development.
Write to Adam Orlando at Mining.com.au
Images: PNX Metals Ltd
