PNX Metals Ltd (ASX:PNX) has raised $3.36 million in a strongly supported share placement to sophisticated investors priced at 0.8 cents per share.
Funds will be used to accelerate intensive zinc and precious metals exploration drilling at its Northern Territory projects and to progress the Hayes Creek Project feasibility studies.
Notably, the capital raising included a $2 million investment from a new German cornerstone investor, Delphi Unternehmensberatung Aktiengesellschaft.
READ: PNX Metals hits high-grade gold at Fountain Head in NT, commences capital raising
PNX’s managing director James Fox said: “We are very pleased to have secured a new cornerstone investor who recognises the significant underlying value in our assets, and shares our vision to develop a highly profitable and long-life zinc and precious metals mining operation in the Northern Territory.
“To that end PNX is continuing an aggressive and high-impact regional and near-mine exploration program at its Burnside, Moline and Hayes Creek Projects with the aim of further enhancing and extending the life of Hayes Creek through the discovery and delineation of additional economic resources.”
Fox added: “The recent high-grade gold results being generated from drilling at our new Fountain Head Project clearly demonstrate this potential and continued regional exploration success will be a game-changer for PNX.”
Placement to be conducted in two tranches
The placement will consist of two tranches being $2.1 million and $1.26 million, with the second tranche subject to shareholder approval.
Investors are entitled to one free option for each share subscribed exercisable at 1.5 cents expiring 30 September 2021.