Group Ten Metals raises $2.45 million for PGE drilling in Montana
Group Ten Metals Inc. [PGE-TSXV, PGEZF-OTC, 5D32-FSE] said Thursday August 29 that it has raised $2.45 million from an oversubscribed private placement offering of 17.5 million units at 14 cents per unit.
The company said net proceeds will be used to fund exploration at the company’s Stillwater West platinum group elements-nickel-copper project in Montana.
“We are very pleased with the level of interest in the company and our 2019 exploration program, as reflected in the oversubscribed placement,” said Group Ten President and CEO Michael Rowley.
“The additional funding will directly enable an expanded field program at the Stillwater West Project, where drilling, now underway, has intercepted massive and disseminated sulphide mineralization consistent with the expectations based on geological modeling by the Group of Ten technical team,” he said.
“We look forward to making further announcements as we advance our drill program at the Iron Mountain, Camp Zone, and Chrome Mountain target areas and complete follow-up work on the five additional multi-kilometre target areas where we see the potential for ‘Platreef-style bulk tonnage PGE-Ni-Cu-Co deposits.'”
Group Ten shares were unchanged at 15 cents on volume of 595,167 Thursday. The shares are currently trading in a 52-week range of $0.115 and $0.23.
Group Ten Metals is a junior exploration company with a focus on the development of high-quality platinum, palladium, nickel, copper and cobalt and gold exploration assets in North America. The company’s flagship asset is the Stillwater West project, which lies adjacent to Sibanye-Stillwater‘s [SBGL-NYSE; SGL-JSE] high-grade platinum group elements mine.
Group Ten’s portfolio also includes the high-grade Black Lake-Drayton Gold project in the Rainy River district of northwest Ontario and the Klaune PGE-NI-Cu project in the Yukon. Kluane lies on trend with Nickel Creek Platinum Ltd.‘s [NCP-TSX, NCPCF-OTCQX] Wellgreen deposit.
Nickel Creek Platinum, a company previously known as Wellgreen Platinum, recently postponed a Preliminary Economic Assessment at the Wellgreen Project, saying it wanted to wait until market conditions and the price of nickel improves.
Group Ten’s Stillwater West Project positions the company as the second largest landholder in the -Stillwater Complex, adjoining and adjacent to Sibanye-Stillwater’s Stillwater, East Boulder, and Blitz platinum group elements mines in south central Montana.
The company has said Stillwater West stratigraphically brackets Sibayne-Stillwater’s high-grade mines in the magmatic layers of the Stillwater complex, and includes five drill-defined mineralized zones plus nine additional target areas based on surface sampling and geophysical conductors.
Group Ten has prioritized exploration of the lower Stillwater Complex where it sees the potential for much larger mineralized systems than have previously been recognized in the district based on geological similarities with the Platreef deposits on the northern limb of South Africa’s Bushveld Complex.
Meanwhile, the company said the units offered in the private placement offering that closed on Thursday consist of one common share and one half-share purchase warrant. Each full warrant entitles the holder to acquire one common share at $0.21 per share for three years after the date of closing.