Brixton Metals Corp. [BBB-TSXV] said Monday it is raising $6 million from a non-brokered private placement of units and flow-through shares.
Brixton is a junior exploration and development company with a focus on precious metals and four exploration projects, including the Thorn copper-gold-silver and the Atlin Goldfields projects in northwestern B.C., the Langis-Hudson Bay silver-cobalt project in Ontario and the Hog Heaven silver-gold-copper project in northwest Montana.
Its shareholder group includes Bay Street financier Rob McEwen, Pan American Silver Corp. [PAAS-TSX, NASDAQ], and Hecla Mining [HL-NYSE].
News of the financing follows a recent rally in the value of the company’s stock price which was triggered by the release of impressive assay results from its Thorne Project, which is located in B.C.’s Golden Triangle area.
Highlights included results from drill hole THN19-150, which returned 554.70 metres of 1.97 g/t gold equivalent, including 135.96 m of 1.35 g/t gold, 0.31% copper, 133.62 g/t silver or 5.00 g/t gold equivalent, including 6.0 metres of 3.56% copper, 3.37 g/t gold, 257.77 g/t silver.
Among the highlights were high-grade copper dominated intervals of 6.0 metres of 3.56% copper, 3.37 g/t gold, 257.77 g/t silver from 155 m depth and 16 metre of 1.38% copper from 414.35 m depth.
On Monday, Brixton said it has arranged a fully-subscribed, non-brokered private placement of units and flow-through shares. Each unit is priced at 18 cents per share and will be comprised of one common share of the company and one half of one common share purchase warrant.
Each flow-through share is priced at 22 cents and will be comprised of one common flow-through share. Each warrant entitles the holder to acquire one common share of the company at 25 cents for two years from the date that the offering closes.
Net proceeds from the private placement of units and the gross proceeds from the private placement of flow-through shares will be primarily used for exploration activities and for general working capital purposes, the company said. The offering is expected to close by August 9, 2019.
On Monday, Brixton Metals shares jumped 15.56% or $0.035 to 26 cents on volume of 1.3 million. The shares are currently trading in a 52-week range of 10 cents and 27 cents.
The Thorn Project is a 996-square kilometre claim group located approximately 90 kilometres from Juneau, Alaska, and 65 kilometres from tide water.
It hosts a district scale Triassic to Eocene volcanic-plutonic complex with many styles of mineralization related to porphyry and epithermal environments. The three main targets include the Chivas Zone, which is an important new, large scale, yet to be drilled porphyry target; and the Outlaw Zone, which is a large-scale clastic sediment hosted gold-silver target where hole 128 returned 60 metres of 1.15 g/t gold and 5 g/t silver.
The Camp Creek porphyry target includes the Oban, Talisker, and Glenfiddich zones.
The Thorne project is within the traditional territory of the Taku River Tlingit First Nation (TRTFN). The company signed an exploration deal with the TRTFN in 2013.