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General mining & base metals

PNX Metals completes rights issue to progress Hayes Creek zinc-gold-silver project

Substantial holder Delphi’s shareholding in PNX will increase to about 40.6% on an undiluted basis.

PNX Metals Ltd (ASX:PNX) has received acceptances for 371,111,697 new shares under its underwritten non-renounceable pro-rata rights issue, for a total consideration of $2,226,670.

The acceptances represent a take-up of about 41% of the shares offered at an issue price of 0.6 cents per share.

This includes participation by a number of major shareholders, including Delphi which took up its full entitlement together with the board and management of PNX.

READ: PNX Metals launches rights issue of up to $5.48 million to fund Hayes Creek DFS completion

Pursuant to the underwriting agreement, Delphi will be allocated the remaining shortfall of 539,073,425 shares for a total consideration of $3,234,441.

Following completion of the rights issue, Delphi’s shareholding in PNX will be about 40.6% on an undiluted basis. New shares under the rights issue will be issued on May 20, 2019.

PNX managing director James Fox said: “On behalf of the board of PNX, I would like thank all our shareholders who have participated in this rights issue which will enable the company to progress its flagship Hayes Creek zinc-gold-silver project, including completion of the definitive feasibility study, and ongoing assessment of the high-grade Fountain Head gold project.

“We are grateful for the continued strong support of our major shareholders, and Delphi’s underwriting commitment for the rights issue is particularly appreciated.”

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