PNX Metals Ltd (ASX:PNX) (FRA:4P1) has completed a non-renounceable pro-rata rights issue after accepting 527.9 million new shares at 0.06 cents per share for a total exceeding $3.167 million.
Combined with the recent placement, this takes the company’s recent capital raising efforts to more than $5.437 million.
The take-up of the rights issue represents 72% of the maximum number of new shares available of 730,238,702.
Delphi takes full entitlement
It included participation by many major shareholders, including prominent Australian junior resources investor Delphi Unternehmensberatung AG, which took up its full entitlement together with the board and management of the company.
German-based Delphi also participated in the placement to eligible professional and sophisticated investors of 378.333 million fully-paid ordinary shares also at 0.6 cents per share to raise about $2.27 million before costs.
These capital raising initiatives will advance the company’s exploration and development strategy focused on gold and zinc-gold-silver projects in the Northern Territory.
To “rapidly advance” exploration
PNX managing director James Fox said: “On behalf of the board of PNX, I would like to thank all our shareholders who participated in the rights issue.
“This funding together with the placement will enable the company to progress its 100%-owned Fountain Head gold and Hayes Creek zinc-gold-silver projects and will see the company through a significant period of project development and gold exploration activity over the next 12 months, including finalising the acquisition of the Glencoe gold deposit.
“Exploration will be rapidly advanced, with near-mine drilling to test newly identified target areas at Fountain Head commencing as early as February, subject to government approvals.
“We look forward to delivering on the potential for the projects to create significant value for the company’s shareholders.”
Shortfall offer
New shares under the rights Issue will be issued on December 24, 2020, and holding statements are scheduled for despatch on January 4, 2021.
The total shortfall under the rights issue is 202.28 million new shares and the directors of PNX will consider the placement of the shortfall within three months of the December 17, 2020, rights issue closing date.
Use of funds
Capital raising proceeds will be used to accelerate activities at the 100%-owned Fountain Head and Hayes Creek projects, including feasibility work and government and environmental approvals submission.
Near-mine and regional gold exploration will also re-commence to test new exploration targets with the potential to host additional gold resources.
These were identified during a recent geological review of the company’s exploration portfolio about 170 kilometres south of Darwin in the Pine Creek region of the Northern Territory.