Indicator Minerals (TSX-V:IME) is set to complete a non-brokered private placement of up to CDN$2 million to fund exploration on its properties in Nunavut in Canada and for general working capital purposes. The fundraising came not long after the company announced a CDN$2 million exploration program to be jointly funded by the company and partner Peregrine Diamonds.
The placement comprises flow-through units at $C0.15 per unit and non-flow through units at C$0.12 per unit. Each flow-through unit will consist of one common share and one common share purchase warrant, which will be exercisable into one common share for 24 months from closing at C$.16 per share and could be accelerated if the closing price of the company’s shares exceeds C$0.24 for at least ten trading days.
Past drill results on the NQN-001 kimberlite at the company’s Nanuq North project in Nunavut has highlighted the need for larger bulk samples to assess the commercial potential of the 4.5 hectare pipe. Drilling has started in May and is expected take four to six weeks to complete with the aim of recovering at least 3,500 kg of kimberlite core to improve the company’s understanding of the size, distribution and number of phases in the pipe.
Indicator Minerals has previously raised $1.4 million from investors through the issue of approximately 5.985 million flow-through units at a price of C$0.10 per flow-through unit and 10.3 million non-flow-through units at a price of C$0.08 per non-flow-through unit.
The NQN-001 kimberlite was discovered in 2008 and was interpreted to have a minimum surface area of 4.5 ha (hectares). Numerous geophysical targets and multiple kimberlite indicator mineral trains have been identified at Nanuq North and remain to be tested. Nanuq North comprises 51 mineral claims for 33,057 ha. Indicator Minerals holds a 40% stake in the project with Peregrine holding another 40% and the balance controlled by Hunter Exploration Group.
The company is also currently working on a transaction that will give it a foothold in Brazil’s emerald industry.