The company said Crescat in association with geologist Dr. Quinton Hennigh, is committing to an investment of up to $1.5 million of the $5 million placement.
“We are delighted to welcome Crescat as a strategic shareholder,” said Cantex Chairman Charles Fipke.
Cantex is a company that set out to define a world class silver-lead-zinc deposit on its 100%-owned North Rackla claim block, which is located approximately 100 kilometres northeast of Mayo in central Yukon.
It has launched the search roughly 30 years after Fipke discovered Canada’s first commercial diamond mine in the Northwest Territories
Covering 21,500-hectares and 1,075 claim, the Yukon project is also situated to the northeast of both the Hecla Mining Company (HL-NYSE) Rackla gold property and Victoria Gold Corp.’s [VGCX-TO] new Eagle mine.
“Crescat’s investment is a strong endorsement of our North Rackla project in the Yukon,’’ Fipke said. “The project hosts high grade silver-lead-zinc-germanium over a drill-tested 2.3-kilometre strike length down to a depth in excess of 700 metres,” he said. Cantex said it has completed 60,000 metres of drilling so far.
“The Yukon is emerging as a major silver-zinc-lead province hosting a wide spectrum of different styles of deposits,’’ Hennigh said.”Cantex Mine Development’s North Rackla project hosts a particularly prospective mineralizing system that displays similarities to some large, famous silver-zinc-lead deposits in Australia, notably Broken Hill, New South Wales,’’ he said.
“We are intrigued with the high-grade nature of drill intercepts to date including very high contents of germanium, an increasingly critical metal. This is a project that needs advancing in a very tough market and we are happy to become new shareholders in this exciting exploration story.’’
Meanwhile, Cantex said the offering will consist of a combination of flow-through units and non-flow through units for total proceeds of $5 million. The flow-through units will be priced at 30 cents per unit, which of which will consist of one flow-through share and one-half warrant.
The units will be priced at 26 cents per unit, each of which will consist of one non-flow through share and one-half warrant. Each whole warrant issued in connection with either the flow-through units or units entitles the holder to acquire a non-flow through share price for 39 cents for a term of two years.
On September 19, Cantex shares were unchanged at 26 cents and currently trade in a 52-week range of 45 cents and 14.5 cents.