Platinex Inc (CSE:PTX) said it has completed its previously announced private placement raising gross proceeds of $2,700,840 which was oversubscribed due to market demand.
In addition, the company announced the completion of the binding heads of agreement with Fancamp Exploration Ltd with respect to advancing the exploration and development of certain gold mineral properties owned by the parties located in the Timmins, Ontario mining camp.
In a statement, Greg Ferron, Platinex president, and chief executive officer of Platinex, said: “We would like to thank all new investors and existing shareholders of the company that participated in the placement. We look forward to Fancamp’s input on Platinex’s board, as a joint venture partner and as a member of the South Timmins technical committee.
“We are excited to advance the South Timmins joint venture projects, both of which are extremely well situated on the Ridout Deformation Zone, with the newly acquired Heenan Mallard gold project bordering IAMGOLD’s Côté Gold project and the Shining Tree gold property bordering Aris’s Juby gold deposit. Exploration plans for 2023 are being developed and we will provide an update as those plans are finalized.”
READ: Platinex closes first tranche of private placement for proceeds of $1.25M
Platinex said it raised $2,119,540 from an offering of 52,187,797 non-flow-through (Non-FT) units at a price of $0.04 each. Each unit is comprised of one common share of the company and one half of one common share purchase warrant, with each whole warrant exercisable into one common share of the company at a price of $0.055 at any time on or before the date which is 60 months from the closing of the Non-FT offering.
The company also raised $581,300 from an offering of 13,640,000 flow-through (FT) units at a price of $0.045 each. Each FT unit is comprised of one common share of the company to be issued as a ‘flow-through share’ within the meaning of the Income Tax Act (Canada) and one half of one common share purchase warrant. Each whole warrant shall be exercisable into one non-flow-through common share of the company at a price of $0.055 per share at any time on or before the date which is 60 months after the closing date of the FT offering.
The warrants will be subject to an acceleration clause requiring the exercise of the warrants if the Platinex share price closes on the Canadian Securities Exchange at $0.15 or greater for 20 consecutive trading days.
The gross proceeds of the FT offering will be used by Platinex to incur eligible ‘Canadian exploration expenses’ that will qualify as ‘flow-through mining expenditures’ as such terms are defined in the Income Tax Act (Canada) related to the gold projects including the Shining Tree Properties and Swayze Properties on or before December 31, 2024. All qualifying expenditures will be renounced in favour of the subscribers effective December 31, 2023.
The FT offering constituted a related party transaction within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (MI 61-101) as insiders of the company subscribed for a total of 755,556 FT units, with Ferron subscribing for 555,556 FT units and Graham Warren, the company’s chief financial officer subscribing for 200,000 FT units.
The company said it paid finder's fees of $55,028 and issued 1,301,027 finder's warrants in relation to the financings. Each finder's warrant entitles the holder to purchase one common share of the company at a price of $0.05 per share for a period of 24 months from closing.
All shares issued under the offerings and any shares issued under the exercise of warrants will be subject to a four-month hold period from the date of issuance.
The TSX Venture Exchange has provided its conditional acceptance of the transaction in respect of Fancamp's participation. The FT offering and the 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 W2 Copper-Nickel-PGE Project near the Ring of Fire; a 75% interest in the South Timmins Mining JV with Fancamp Exploration, which includes the 225 square kilometres Shining Tree Gold Project and the highly prospective Heenan Mallard Gold Project, both of which lie along the Ridout-Tyrell Deformation Zone on strike with IAMGOLD’s Côté Gold deposits; and, an option to earn a 100% ownership interest in the Muskrat Dam Critical Minerals Project with a primary focus on Lithium.
Platinex also holds a basket of net smelter return (NSR) royalties on gold, PGE, and base metal properties in Ontario.
Contact the author at jon.hopkins@proactiveinvestors.com