PolarX Ltd (ASX:PXX) (FRA:PX0) has accepted firm commitments from sophisticated and professional investors to subscribe for 125 million shares at an issue price of A$0.04 per share in a well-supported share placement to raise A$5 million.
The share placement was closed within 24 hours of opening and was strongly supported by existing Australian and overseas shareholders.
It is expected to settle on or around Wednesday, February 17, 2021.
“Delighted with response”
PolarX managing director Frazer Tabeart said: “We are delighted with the response to our capital raising, particularly the strong support from our existing shareholders, and we welcome the new shareholders to our register.
“These funds allow us to commence our exploration programs in Nevada and Alaska with a high degree of confidence, and we look forward to providing progress updates.”
The company is pleased by the interest received, demonstrating strong support from existing and new shareholders for ongoing exploration, and pre-development activities at the Alaska Range Project and the new, highly prospective Humboldt Range Project.
Use of funds
Funds raised will be used to advance the company’s projects in the USA including:
- Completing due diligence and follow-up fieldwork in Nevada to advance the Humboldt Range Gold-Silver Project to drill-ready status by the end of the third quarter of 2021;
- Conducting technical studies, including metallurgical test-work at the Alaska Range Copper-Gold Project and a subsequent scoping study and;
- Carrying out advanced exploration drilling in Alaska.
Placement details
The placement is being undertaken within the company’s existing capacity under ASX Listing Rules 7.1 and 7.1A.
Viriathus Capital acted as sole lead manager to the placement and was assisted by Fresh Equities as lead arranger.
Planned exploration
The company’s proposed exploration plans at Humboldt Range include:
- Completion of due diligence and exercise option to acquire a Mine Lease Agreement;
- Geological mapping and channel sampling to delineate and evaluate zones of intense quartz veining and alteration (silicification) and assess bonanza vein potential and bulk mineable potential. This work will commence in April 2021; and
- Ground geophysics (IP) to help map out zones of silicification (resistive zones) with bulk mining potential.
The program is aimed at generating drill-ready targets by the end of the third quarter of 2021.
Alaska Range
PolarX’s proposed program for Alaska Range comprises:
- Metallurgical test-work program in quarters one and two of 2021 to evaluate processing options for the Zackly gold-copper-silver mineralisation and the potential for co-processing with Caribou Dome copper mineralisation;
- An initial scoping study is being considered for commencement in Q3 2021 to evaluate combined mining and processing of Zackly East, Caribou Dome and Zackly Main mineralisation to help determine minimum resource size required for a viable project and whether Caribou Dome can be mined on a campaign basis and processed at Zackly; and
- Drilling program in Q2/Q3 of 2021.
This drilling is aimed at:
- Testing the depth and northern down-plunge potential at Zackly Main;
- Drilling the ~500-metre-long untested magnetic structure between previous high-grade drill intersections in holes ZX18025 (15 metres at 2.2 g/t gold + 2.3% copper) and ZX18024 (47 metres at 3.1 g/t gold + 0.6% copper);
- Evaluating over 2.6 kilometres of untested strike-length at Zackly East; and
- Deepening the discovery hole at Mars which intersected 102 metres at 0.22% copper and 0.1 g/t gold and which ended prematurely in porphyry-style mineralisation.