Ximen Mining Corp (TSX-V:XIM, OTCQB:XXMMF) has revealed that Canadian mining company New Gold Inc (NGD) has acquired a 9.9% interest in the company which has three precious metals projects in southern British Columbia.
Ximen said it will use the net proceeds from the offering for exploration expenses on its British Columbia mineral properties.
"Building strategic relationships with active partners in our community and jurisdiction is essential to Ximen's long-term goals. Ximen is looking forward to enhancing its relationship with New Gold,” Ximen CEO Christopher R. Anderson said in a statement. “Their initial decision to invest in Ximen projects and development plans is an excellent starting point."
READ: Ximen Mining closes strategic investment of over C$2.5M
The investment was made via a non-brokered private placement of 8.89 million charity flow-through shares priced at $0.28 per share for total gross proceeds of $2.53 million. In a second-step transaction, and as part and parcel of the completion of the offering, NGD acquired the 8.89 million shares at a 30% discount to the subscription price.
Each flow-through share consists of one common share that qualifies as a flow-through share as defined in subsection 66(15) of the Income Tax Act. The shares are being issued as part of a charity flow-through arrangement. The company will pay no commission or finders' fee in connection with the offering.
The offering is between arm's length parties, and all securities issued following the offering are subject to a hold period of four months and one day from the closing. The offering is also subject to approval from the TSX Venture Exchange.
Ximen’s two gold projects are the Gold Drop project and the Brett Epithermal Gold project. Ximen also owns the Treasure Mountain Silver Project, adjacent to the past producing Huldra Silver (TSX-V:HDA) mine.
Ximen also has the option to acquire the Kenville Gold Mine located in Nelson, British Columbia.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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