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- PolarX (PXX) is getting a $2.51 million funding boost to support exploration activities at its Humboldt Range and Alaska Range projects
- The company is launching a $2.51 million placement through the issue of over 119 million shares at 2.1 cents each
- PolarX will then look to raise an extra $2.19 million through a one-for-eight non-renounceable rights issue
- The funds will specifically be used for an upcoming drilling program at Humboldt Range as well as for drilling and studies at the Alaska Range project
- PolarX has ended Thursday’s session in the red, with shares closing at 2.4 cents
PolarX (PXX) is getting a $2.51 million funding boost just before drilling commences at its North American projects.
The company came out of a trading halt today as it announced getting firm commitments for the $2.51 million placement which will include the issue of 119.6 million shares priced at 2.1 cents each.
The placement also comes with a free-attaching option on a one-for-two basis with options to be exercised at three cents within 18 months.
Following the placement, PolarX will launch a one-for-eight non-renounceable rights issue to eligible shareholders to raise up to an extra $2.19 million on top of the placement funds.
Peak Asset Management is acting as Lead Manager for the placement and will be
paid a six per cent fee on the placement funds.
If the materials stock raises at least $4 million from the placement and rights issue, it will issue Peak Asset Management with 30 million options exercisable at three cents on or before April 1, 2025. This is subject to shareholder approval but if shareholders don’t approve, the lead manager will be paid a cash fee of the equivalent value.
PolarX plans to use the placement money for drilling at the Humboldt Range project in Nevada which is expected to begin next week.
The funds will also go towards drilling at the Caribou Dome deposit within the Alaska Range project, as well as for metallurgical studies and a scoping study at Alaska Range.
Funds raised through the rights issue will provide additional funding for the proposed 2022 exploration program at Caribou Dome.
PolarX ended Thursday’s session in the red, with shares closing at 2.4 cents.
