PolarX Ltd (ASX:PXX) has accepted firm commitments from investors to subscribe in a placement of 119.6 million shares at A$0.021 per share to raise A$2.51 million before costs with a free attaching option on a 1:2 basis worth 3 cents and expiring in 18 months.
Following the placement, the company will release a 1 for 8 non-renounceable rights issue to eligible shareholders on the same terms to raise up to an additional A$2.19 million.
Leading Melbourne boutique, Peak Asset Management, led the oversubscribed capital raise.
Humboldt Range Project
Funds raised will be used to advance the company’s projects in the USA, including the initial drilling program at the Humboldt Range Gold-Silver Project in Nevada, which kicks off next week.
PolarX’s first drill testing of gold and silver targets on this project will advance channel sample assays confirming a very large drill target for bulk-tonnage gold-silver mineralisation at Star Canyon within the Black Canyon lode claims. Black Canyon is at the northern end of the project.
Drilling is expected to capitalise on highly anomalous gold and silver values returned in the first three of 11 recent channel sample traverses, including:
- 54 metres at 17.3 g/t silver and 0.22 g/t gold;
- 72 metres at 11.7 g/t silver and 0.21 g/t gold; and
- 138 metres at 2.7 g/t silver and 0.14 g/t gold.
The company is also keen to explore multiple gold-silver targets in the Fourth of July claims at the southern end of the Humboldt Range Project.
Alaska Range Project
Proceeds of the placement will also be directed towards resource extension drilling at the Alaska Range Project's high-grade Caribou Dome copper deposit in Alaska, to advance historical drilling that included recent high-grade intersections of:
- 19.1 metres at 7.0% copper; and
- 10.7 metres at 7.4% copper.
The planned exploration program will consist of additional core drilling at the Caribou Dome deposit aimed at extending mineralisation along strike and down-dip from these high-grade intersections.
Metallurgical test-work will also be conducted to evaluate processing options for the Zackly gold-copper-silver mineralisation and the potential for co-processing with Caribou Dome copper mineralisation.
The company also anticipates completing a scoping study to evaluate combined mining and processing of Caribou Dome and Zackly mineralisation in the second quarter of the year. This will help determine minimum resource size required for a viable project.