PTX raising $3.0 million for Ontario critical minerals exploration

PTX Metals Inc. [PTX-CSE] said it is upsizing a previously announced non brokered private placement financing, which is now expected to raise $3.0 million, up from the earlier $2.5 million target.

Upon closing of the private placement, the company said it will announce exploration plans for its W2 copper-nickel-PGE and South Timmins gold projects in Ontario.

On Tuesday, PTX shares were unchanged at 12 cents. They trade in a 52-week range of 18 cents and $0.06.

The private placement consists of a non-flow-through NFT component, consisting of 8.0 million units of the company priced at 12.5 cents per unit for aggregate proceeds of $1.0 million, and a flow-through component, whereby the company will now issue 14.28 million flow-through common shares priced at 14 cents per FT share, for aggregate proceeds of $2 million. Each FT share will qualify as a flow-through share as defined by the Income Tax Act (Canada).

The company said the private placement will close in multiple tranches, with the first tranche expected to close by December 3, 2024.

Gross proceeds of the FT offering will be used to incur eligible Canadian exploration expenses that will qualify as flow-through critical mineral mining expenditures, related to the company’s mineral projects, including the W2 project, on or before December 31, 2025. Net proceeds from the sale of the NFT offering will be used to fund exploration and development activities and for working capital and general corporate purposes.

PTX recently said it has received approval from the Ontario Junior Exploration Program (OJEP) for $200,000 in funding for the W2 project in northwestern Ontario. The non-dilutive funding allows the company to reclaim exploration activities at W2 carried out between April 1, 2024 and February 28, 2025, and more specifically outlined in a workplan and budget previously agreed upon with a maximum grant amount of $200,000.

“We are thrilled to have the continuing support of the Government of Ontario, not only recognizing the importance of the W2 Cu-Ni-PGE-Au project for our province, but also financially supporting PTX efforts in developing our critical minerals exploration programs and assets,” said PTX President and CEO Greg Ferron.

In September, 2024, the company published and filed the W2 NI 43-101 Technical Report summarizing a near-surface copper-nickel-PGE exploration target for the W2 Project. The exploration target outlines a 3D grade shell model based on historic and recent drill results, indicating a near-surface exploration target between 59 and 135 million tonnes averaging between 0.78% to 1.03% copper equivalent (CuEq), containing some 610,000 tonnes to 1,052,000 tonnes CuEq.

This is the equivalent of 1.3 billion and 2.3 billion pounds of CuEq. The exploration target model includes estimates in five mineralized zones, including CA Zone,1, CA Zone 2, AP Main and two satellite zones AP North and AP East.