Platinex Inc said it has closed a non-brokered private placement for gross proceeds of $1,536,300.
The company issued 16,060,000 units at a price of C$0.05 per unit. In addition, the company issued 12,221,667 flow-through units (FT unit) at a price of C$0.06 per unit.
Each unit and FT unit consists of one common share and one-half of a common share purchase warrant. Each full warrant is exercisable into a common share at an exercise price of $0.07 for a period of 36 months from the closing of the offering.
The company said it will use the proceeds of the offering to incur Canadian Exploration Expenses on its exploration properties in Ontario including W2 Copper-Nickel-PGE Project in the Ring of Fire and the Shining Tree Gold Project in the Abitibi and for general corporate purposes.
READ: Platinex acquires mining claims to expand its Shining Tree project area in Ontario
The company anticipates closing a final tranche of the offering shortly.
Platinex said it paid in certain cases a cash commission equal to 7% of the proceeds from purchasers introduced to the company by the finder and a finder's warrant equal to 7% of the securities sold to purchasers introduced to the company by the finder. The finder's warrant shall be exercisable into a unit.
All securities issued in connection with this offering are subject to a four-month plus one-day hold period from the closing date in accordance with applicable securities laws.
Platinex creates shareholder value through the opportunistic acquisition and advancement of high-quality projects in prolific Ontario mining camps.
Current assets include a 100% ownership interest in the district-scale W2 Copper-Nickel-PGE Project and a 100% interest in the 225 square kilometre Shining Tree Gold Project in the Abitibi region of Ontario, a world-renowned gold district.
The W2 Project controls one of the major Oxford Stull Dome complexes. The Shining Tree Project covers a major portion of the Ridout-Tyrrell deformation zone that trends as far west as Newmont's Borden Mine, through the area of IAMGOLD's Cote Gold deposit, and across Aris Gold's Juby Project.
The company is also developing a net smelter return (NSR) royalty portfolio and currently holds royalties on gold, PGE, and base metal properties in Ontario.
Contact the author at jon.hopkins@proactiveinvestors.com