PNX Metals Ltd (ASX:PNX) is targeting A$4.6 million from eligible shareholders to support ongoing activities at its Fountain Head gold and Hayes Creek zinc-gold-silver projects in the Northern Territory and to continue with regional exploration.
Several existing substantial shareholders, including DELPHI Unternehmensberatung AG, have confirmed their intention to take up entitlements in the one for four non-renounceable pro-rata rights issue.
The offer
The company is offering eligible shareholders the opportunity to acquire new shares at $0.005 cents per share through the rights issue, which it hopes will raise up to A$4.6 million.
This share price represents a discount in the vicinity of 18.73% to the volume-weighted average market price of PNX shares for the five trading days prior to January 18, and a discount of around 23.08% on the company’s last closing price of $0.0065 on January 17. The number of shares in the release totals just over nine million.
PNX sees the significant ongoing support shown by existing key shareholders, including DELPHI, as strong endorsement of its strategy to develop its gold, zinc and silver projects.
Near-mine exploration
Proceeds of this offer will be used to continue with exploration and development activities at PNX’s Northern Territory projects in the Pine Creek region, 170 kilometres from Darwin.
Near-mine exploration at Glencoe has kicked off once again with three diamond drill-holes, and planning is underway for a larger reverse circulation (RC) program, to start following the wet season in the Territory, when ground conditions improve.
The aim is to build on the successful 2021 drilling campaign where near-surface high-grade gold mineralisation was drilled over a 1.4-kilometre strike extent.
Regional exploration will re-commence to test new exploration targets with the potential to host additional gold resources identified during a recent geological review of the company’s significant NT exploration portfolio.
Exciting year ahead
“The support received so far by the company for the rights issue is a strong endorsement of the quality of PNX’s Northern Territory exploration and development assets, including the 100%-owned Fountain Head gold and Hayes Creek zinc-gold-silver projects," managing director James Fox said.
"With government and environmental approvals well advanced, this funding will see us through an exciting period of activity. An updated mineral resource at Glencoe is due later this quarter, and diamond drilling has already re-commenced.”
“A larger reverse circulation drill program will start as soon as possible to build on the excellent results announced so far, aiming to extend the near-surface high-grade gold footprint at Glencoe beyond the 1.4 kilometres already drilled.
"We look forward to delivering on the potential for the Fountain Head and Hayes Creek projects to create significant value for our shareholders.”