- Junior explorer PolarX (PXX) is seeking nearly $5 million in funding from investors through a share placement and purchase plan
- The company will use the new funds to kick off a 3000-metre drilling program at its Alaska Range copper-gold project
- Already, PolarX has locked in $3.76 million through a share placement to sophisticated and professional investors, with the remaining $1 million to come from the purchase plan
- All new shares will be priced at 3.8 cents each
- With today’s capital raise, PolarX expects to begin drilling in just four weeks
- Shares in the company closed 7.5 per cent lower today for 3.7 cents each
Junior mineral explorer PolarX (PXX) is seeking $4.76 million in funding from shareholders for a 3000-metre drilling program at its Alaska Range Project.
The company revealed its plans to explore the Alaskan gold-copper project in May, with the drilling program at the Zackly East prospect slated for July.
Today, the company said it has received firm commitments from sophisticated and professional investors to raise $3.76 million, with another $1 million to come from a share purchase plan. The new cash means the company will be ready to drill in just four weeks.
The capital raise
PolarX is pricing all new shares under both the placement and share purchase plan at 3.8 cents each — meaning roughly 99 million new shares will be issued under the share placement.
Retail shareholders will have the chance to top up as part of the capital raising plan, with each shareholder allowed to subscribe for $30,000 worth of new shares at the same price as the placement under the entitlement offer. If the full $1 million is raised, this means another 26 million shares will be issued as part of the offer.
The drilling plans
PolarX has outlined an Inferred Resource of 41,000 tonnes of copper, 213,000 ounces of gold, and 1.5 million ounces of silver at the Zackly Main Skarn deposit. Zackly East is just 800 metres away from this deposit.
The company plans to drill between 15 and 20 shallow holes as part of the 3000-metre drilling program to follow up on previously-discovered high-grade gold and copper mineralisation.
Previous strong results include a 55-metre intersection grading 2.6 grams per tonne of gold and 0.6 per cent copper.
Some of the new funds will also go towards a drilling program at the Mars target in Alaska, as well as metallurgical test work at Zackly.
PolarX Managing Director Dr Frazer Tabeart said the previous drilling results from Zackly East were “exceptional” and give the company great confidence in the prospect’s potential.
“These funds allow us to immediately commence the mobilisation of people and drill rigs for the planned 3000-metre core drilling program to test our best target: the near‐surface, high‐grade, gold‐rich Zackly East Skarn,” Dr Frazer said.
Nevertheless, PolarX was unable to escape a tough day across the metals and mining sector and closed with shared 7.5 per cent lower at 3.7 cents each.