PNX Metals Ltd (ASX:PNX) (FRA:4P1) has received a further show of confidence from Germany-based substantial shareholder Delphi, which has increased its holding to 44.38% from 41.81%.
Wilhelm K.T. Zours majority-owned Delphi Unternehmensberatung Aktiengesellschaft (AG) purchased 233.33 million new shares at 0.6 cents each for a total of $1.4 million by participating in a placement.
PNX has also given shareholders the opportunity to acquire new shares at the same price as the placement, through a one-for-four non-renounceable pro-rata rights issue to raise up to $4.4 million.
The company is raising the funds to advance its exploration and development strategy focused on gold and zinc-gold-silver projects in the Northern Territory.
PNX managing director James Fox said: “This support for the company through a placement and rights issue is a strong endorsement of the quality of PNX’s Northern Territory exploration and development assets that include the 100%-owned Fountain Head gold and Hayes Creek zinc-gold-silver projects.
“This funding will see the company through a significant period of project development and gold exploration activity over the next 12 months, whilst allowing for flexibility to assess and potentially acquire any ‘bolt-on’ assets identified in the region.
“Exploration will be rapidly advanced and will include drill testing newly identified target areas that lie within a three-kilometre radius of Fountain Head that have the potential to add materially to the existing gold resource base.”