Platinex Inc (CSE:PTX) told investors it has completed the first tranche of its previously-announced private placement, raising proceeds of $1.25 million.
The company said the financing, announced in February, forms part of a binding heads of agreement with Fancamp Exploration Ltd to advance the exploration and development of certain gold mineral properties owned by the parties located in the Timmins, Ontario mining camp.
As part of the transaction, which is expected to close on or about March 13, 2023, Platinex said Fancamp will subscribe for 9.5% of Platinex’s shares. The balance of the financing will occur in tranches including proceeds from Fancamp’s subscription and from additional investors raising approximately $2.5 million.
Platinex financings
To date, Platinex noted that it has raised $720,500 through the issue of 18,012,500 units at $0.04 each. It also raised $530,550 through the issue of 11,790,000 flow-through units at $0.045 each. The company said it has increased its non-flow-through (FT) unit offering from $1.5 million to $2 million.
Each unit is comprised of one common share and one half of one common share purchase warrant, with each whole warrant exercisable into one common share for $0.055 at any time within 60 months from the closing of the non-flow-though offering.
Each FT unit is comprised of one common share and one half of one common share purchase warrant, with each whole warrant exercisable into one non-FT share for $0.055 within 60 months of the closing date of the FT offering. The warrants are subject to an acceleration clause requiring their exercise if the Platinex share price closes on the Canadian Securities Exchange at $0.15 or greater for 20 consecutive trading days.
The company said the gross proceeds of the FT offering will be used for eligible ‘Canadian exploration expenses’ that qualify as flow-through mining expenditures’ under Canada’s Income Tax Act related to gold projects including the Shining Tree and Swayze properties on or before December 31, 2024.
The company noted that the TSX Venture Exchange has provided its conditional acceptance of the transaction in respect of Fancamp's participation. The FT Offering and non-FT Offering are subject to receipt of all necessary regulatory approvals including the Canadian Securities Exchange.
Platinex creates shareholder value through the opportunistic acquisition and advancement of high-quality projects in prolific Ontario mining camps. The company’s current assets include a 100% ownership interest in the 160 square kilometres (km2) district-scale W2 Copper-Nickel-PGE Project in the Ring of Fire and a 100% interest in the 225 km2 Shining Tree Gold Project in the Abitibi region of Ontario, a world-renowned gold district.
Contact the author at stephen.gunnion@proactiveinvestors.com