PolarX Ltd (ASX:PXX) is launching a supplementary placement to place up to 67,934,269 shares at an issue price of A$0.021 per share to raise up to A$1.43 million before costs.
This new placement follows completion of a share issue on April 6, 2022, and an entitlement offer that closed on April 27, 2022.
PXX is hoping to right a delayed postage issued that hindered the delivery of documents to eligible shareholders, which led to a significant number of shareholders unable to apply under the rights issue before the closing date.
The second placement is also in lieu of any shortfall offer with respect to the rights issue.
Each second placement share will include a free attaching listed option on a 1:2 basis. The placement options will be exercisable at A$0.03 each, will expire on November 6, 2023, and will be on the same terms as the existing listed options in the company.
Net proceeds of the second placement will primarily be used to fund the current drilling program at Humboldt Range Gold-Silver Project in Nevada and the 2022 drilling program at the high-grade Caribou Dome copper deposit in Alaska.
Use of funds
PXX has a large works program in train.
The planned work programs for the Alaska Range and Humboldt Range Projects were detailed in March.
Read: PolarX to secure up to A$4.7 million in capital raising with drilling about to kick off in Nevada