Inventus Mining Corp. [IVS-TSXV] shares advanced in heavy trading Monday January 13 after the company said it has updated the terms of a previously announced non-brokered private placement that aims fund projects in the Sudbury, Ontario region.
It said the updated private placement will be for up to 12.4 million units at 10.5 cents per unit, raising gross proceeds of $1.3 million.
Each unit will consist of one common share and one common share purchase warrant, each of which will entitle the holder to acquire one common share for 17 cents for a period of two years after the closing date of the offering.
Inventus shares advanced on the news, rising 8.3% or $0.01 to 13 cents on volume of almost 9.0 million. The shares are currently trading in a 52-week range of $0.07 and 16 cents.
Inventus is a mineral exploration and development company with a focus on the Sudbury mining district. Its flagship asset is a 100% interest in the advanced exploration stage Pardo Paleoplacer Gold Project, which is located 65 km northeast of Sudbury. The portfolio also includes the 100%-owned Sudbury 2.0 property located 40 km northeast of Sudbury.
Proceeds of the offering will be used to fund exploration on the Sudbury 2.0 Project, and to advance bulk sampling at the Pardo Project, Inventus said in a press release.
Pardo is the first important Paleoplacer gold discovery found in North America, Inventus said. Paleoplacer deposits consist of placer concentrations of minerals in which the host material is a consolidated rock (sediment comprising weathered detritus that was subsequently cemented together). The prefix “paleo” simply means ancient.
The Witswatersrand Paleoplacer gold-uranium deposits in South Africa have produced 1.6 billion ounces of gold.
Inventus is working towards a 50,000 tonne advanced exploration bulk sampling program at Pardo.
Meanwhile, the company has also focused on continued exploration of priority targets identified on its Sudbury 2.0 property. It said a program to evaluate and discover new areas of hydrothermal alteration and brecciation radiating from the Temagami Magnetic Anomaly (TMA) has been successful. Five new gold-copper showings were identified on the property in the summer of 2019.
For example, an old prospecting trench on the southeast shore of Laura Lake was located and sampled. One sample from the old workings returned an assay of 7.5 g/t gold and 0.2% copper. The showing has no records of exploration other than the old trench and could predate the 1900s.
The discovery of these new gold-copper showings over quite an extensive area on the Sudbury 2.0 property has provided additional evidence that the TMA may be the fluid source for this mineralized hydrothermal system.
Inventus initially acquired the Sudbury 2.0 property to explore above the TMA for evidence of a mineralized mafic/ultramafic intrusion. The discovery of a mafic dyke with gold-copper mineralization at Laura Creek, located in the core of the TMA is the most significant geological find on the project to date.
“Initial geochemistry of the dyke has warranted intensive prospecting, mapping and sampling of this new dyke that may ultimately reveal the first geological insight into the source of the TMA and its economic potential,” Inventus has said.