Happy Creek Minerals Ltd. (TSX-V:HPY, OTC:HPYCF) said on Monday it had closed an over-subscribed C$3.75 million private placement, with institutional investors including funds managed by Waratah Capital Advisors taking part.
The financing will allow the Vancouver-based explorer to launch a 10,000-metre drill program at its Fox tungsten project in British Columbia, aimed at expanding a 2018 resource estimate.
The company said drilling is expected to start in early September.
“We are extremely pleased with the support shown by institutional investors … with two funds managed by Waratah to hold almost 20% of Happy Creek post financing,” chief executive Jason Bahnsen said in a statement.
Fox, located about 70 kilometres northeast of 100 Mile House, is described by the company as one of the highest-grade tungsten projects globally and well-positioned to serve North American and European industrial and defense markets.
The placement included 34.6 million flow-through units priced at C$0.07 and 26.5 million non-flow-through units at C$0.05. Each unit carried half a warrant exercisable at C$0.07 for five years.
Happy Creek said proceeds will be used for drilling, exploration and development at Fox and other projects in British Columbia’s Cariboo district, as well as for general working capital.