PolarX Ltd (ASX:PXX) is set to launch a non-renounceable rights issue to raise $2.19 million at an issue price of $0.021 per share, as part of an overall capital raising of approximately $4.7 million (before costs).
Read: PolarX to secure up to A$4.7 million in capital raising with drilling about to kick off in Nevada
The overall raising comprises:
- A placement to raise approximately $2.51 million (before costs) at an issue price of $0.021 per share, together with a free attaching option on a 1 for 2 basis; and
- A non-renounceable rights issue to raise approximately $2.19 million (before costs) at an issue price of $0.021 per new share on the basis of 1 new share for every 8 existing shares held by eligible shareholders at the record date, together with a free attaching option on a 1 for 2 basis.
The shares subscribed for under the placement were issued on April 6, 2022.
Shares and options under the rights issue are being made under a prospectus that will be lodged today.
The closing date is April 27, 2022.
Use of funds
PXX will use the funds for:
- Exploration activities at the Caribou Dome Project in Alaska;
- General working capital; and
- To pay the issue costs of the rights issue.
Just a few weeks ago PXX reported “exceptional” drilling results from the Caribou Dome Project in Alaska that have prompted the company to conduct a full review of its existing resource model, with a view to growing the high-grade copper inventory.
The existing Caribou Dome mineral resource estimate is 2.8 million tonnes at 3.1% copper.
Read: PolarX on quest to grow high-grade copper resource at Caribou Dome in Alaska