Platinex Inc said it has closed the second and final tranche of the non-brokered private placement previously announced on April 5, 2022, for gross proceeds of $1.93 million.
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.
In a statement, Greg Ferron, president, and chief executive officer of Platinex commented: "We are thrilled to see most of the financing taken by new shareholders, and we appreciate the ongoing support from existing shareholders that participated."
The final tranche consisted of 3,294,000 units at a price of C$0.05 per unit and 3,800,000 flow-through (FT) units at a price of C$0.06 per unit.
READ: Platinex closes non-brokered private placement for gross proceeds of $1,536,300
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 provide an update shortly on its initial exploration plans at both of its 100% owned district-scale projects including the W2 Copper-Nickel-PGE Project in the Ring of Fire, Ontario and the Shining Tree Gold Project in the Abitibi region of Ontario.
Platinex noted that 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 at C$0.05 per unit.
In addition, the company announced that it has arranged a shares for debt transaction to settle an aggregate of $116,500 by the issuance of 2,330,000 shares to arm's length service providers of the company.
All securities issued in connection with the 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 160 km2 district-scale W2 Copper-Nickel-PGE Project in the Ring of Fire 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