First Tellurium Corp. [FTEL-CSE, FSTTF-OTC] said it is raising $1.4 million from a non-brokered private placement of flow-through shares and units and will use the proceeds to fund exploration at properties in British Columbia and Colorado.
The private placement will consist of 10 million flow-through shares and up to $700,000 through the sale of up to seven million units, each consisting of one non-flow through common share and one common share purchase warrant that is exercisable for 15 cents for two years after the offering closes.
The company said the sale of the flow-through shares will fund exploration at its Deerhorn Property in British Columbia, while proceeds from the unit sale will be used for exploration at the Klondike Property in Colorado.
On October 14, 2022, First Tellurium shares closed at 10.5 cents and currently trade in a 52-week range of 71 cents and $0.08.
First Tellurium’s unique business model aims to generate revenue and value through discovery, project development, project generation and cooperative access to untapped mineral regions in Indigenous territory with sustainable exploration.
“Our polymetallic [tellurium, gold, silver, copper, tungsten] Deer Horn project and Klondike tellurium-gold property in Colorado anchor a diversified search for metals, working in alliance with Indigenous peoples, NGOs, governments and leading metal buyers,’’ the company said.
Tellurium is one of the earth’s rarest elements, and plays a key role in clean energy, battery storage and a growing list of technological uses. Tellurium is a brittle, mildly toxic, rare, silver-white metalloid, which his chemically related to selenium and sulfur.
First Tellurium recently launched a soil sampling program at its Klondike project, which is located in Saguache County, south central Colorado. The work is designed to provide further guidance for a subsequent diamond drilling program.
“Not only will this work give us better information for drill hole placement, it will also allow us to collect more detailed geologic data regarding lithology and structure from rock outcrops encountered whole conducting soil sampling,’’ said Klondike Project Manager John Keller.
The sampling program follows up on previous work conducted by First Solar Inc, when the property was being explored to supply tellurium for Fist Solar’s cadmium-telluride solar panels.
“Surface sampling by First Solar in 2006 found very high tellurium grades of up to 3.3%, along with locally high gold grades,’’ Keller said. “Tellurium grades at Klondike were the highest encountered in the company’s nationwide exploration program,’’ he said.
Klondike is located 16 kilometres from the small town of Saguache and is easily accessible via paved and gravel roads. Most exploration work can be performed year-round.
The company has also said channel sampling is underway at the Deer Horn Property in west-central, B.C., following up on the Pond and H Spot showings in August and September, 2022, which encountered widespread porphyry-style mineralization. “The team will also conduct channel sampling on a third zone of porphyry-style mineralization northeast of the Pond and H Spot zones,” the company said. “The target was identified in 2012 and never explored,’’ it said.