PNX Metals Ltd (ASX:PNX) has raised just under $4 million from a non-renounceable rights issue it closed last week.
Altogether, the explorer brought in $3,959,321 from investors and will issue 791.8 million shares at $0.005 apiece on February 16.
The subscriptions represent an 87% take-up across the board, including oversubscriptions.
The total shortfall under the rights issue amounts to 121,184,082 shares, and PNX directors may consider placing the shortfall within three months of the February 9 rights issue closing date.
PNX’s largest shareholder, DELPHI Unternehmensberatung Aktiengesellschaft, took up its full entitlement under the rights issue, as did the company’s directors and management.
PNX says this demonstrates a strong commitment to and confidence in the company’s projects and its future.
About PNX
PNX is on a mission to become a sustainable and profitable gold and base metals producer.
The ASX-lister will use the rights issue proceeds to advance its exploration and development activities at the wholly-owned Fountain Head gold and Hayes Creek gold, silver and zinc projects in the Northern Territory.
Situated 170 kilometres by road from Darwin, the projects form part of a staged development plan on PNX’s path to production.
Based on a 2021 pre-feasibility study, the combined projects have a mine life of 10 years and an unleveraged pre-tax net present value of $171 million at an 8% rate of return.
Both assets are primed to generate 205,000 gold ounces, 11.4 million silver ounces and 116,300 tonnes of zinc over their lifetime.
Looking ahead, PNX plans to release an updated mineral resource for the project’s Glencoe target later this quarter.
The company hopes it will build on a string of strong drilling results for the region, unveiled earlier this year.