Major Precious Metals Corp (CSE:SIZE) (OTCMKTS:SIZYF) (FRA:3EZ) is offering subscribers a non-brokered private placement worth gross proceeds of C$10 million, the company said.
The company will issue 28.6 million units at a price of C$0.35, with each unit consisting of one share and half a share purchase warrant. Whole warrants will be exercisable at a price of C$0.70, the company said.
“This injection of additional capital together with the ongoing combination of warrants and options being exercised by existing long-term shareholders will serve to continue to finance the extensive drilling and economic evaluation of the company’s Skaergaard project in Greenland, as has been well documented and previously announced by the company,” CEO Tony Williams said in a statement.
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“I am pleased to say that we have already received firm commitments of C$5 million for the offering from these same long-term shareholders, who we would like to thank wholeheartedly for their commitment and vision as to the value creation that has already occurred over the past 6 months since the company acquired the Skaergaard project,” he added.
Major Precious Metals said it plans to use net proceeds for exploration at Skaergaard, among other working capital purposes.
At Skaergaard, the company is developing a globally significant precious metal deposit (palladium, platinum, and gold) with 5.51 million ounces (Moz) contained palladium equivalent (PdEq) ounces in the indicated resource category and 14.4 Moz contained PdEq ounces in the inferred resource category.
The Skaergaard project also contains other critical metals, such as vanadium and titanium, which will be evaluated for their economic potential as part of the upcoming summer exploration program, an updated mineral resource estimate and a preliminary economic assessment.
Additionally, the mineralization within the license area of the Skaergaard layered intrusion is open in all directions, and the company said it plans to explore its new large exploration license to the north. Mobilization is planned for early July.
“Skaergaard as a development project has been effectively dormant for over a decade and we are relaunching at a time of buoyant precious metal prices, and we believe we can add further significant value as we progress the Skaergaard project along the mine development cycle over the coming months,” Williams said.
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