NGEx arranges $20 million private placement
NGEx Minerals Ltd. [NGEX-TSXV] has arranged a $20 million private placement that will be used to further exploration programs in Chile and Argentina and repay amounts drawn against a US$3 million credit facility that matures in September, 2023. Part of the proceeds will also be used for general corporate and working capital purposes.
NGEx said it intends to sell, on a non-brokered private placement basis, an aggregate of up to 10 million common shares at $2.00 per share for gross proceeds of $20 million. The company said it may pay a 5.0% finder’s fee in cash or common shares on all or a portion of the privates placement.
The announcement comes just days after the company said it has obtained a US$3.0 million credit facility that it will use to provide financial flexibility to fund the company’s continuing work programs and provide general working capital. No interest is payable during the term of the debenture.
The facility has been issued by Zebra Holdings and Investments Sarl and Lorito Holdings and Investments Sarl, companies controlled by a trust settled by the late Swedish financier Adolf Lundin, and insiders of the company. The terms of the facility include the company issuing to the lenders, subject to the approval of the TSX Venture Exchange, 12,500 common shares of the company upon closing of the debenture and 200 common shares of NGEx Minerals per month for each US$50,000 of the facility outstanding from time to time up to the maturity date.
All securities issued on conjunction with the facility will be subject to a four-month hold period under applicable securities law.
On October 5, 2022, NGEx shares eased 3.3% or $0.07 to $2.06. The shares are currently trading in a 52-week range of $4.22 and 75 cents.
NGEx is the majority partner and operator at the large-scale Los Helados copper-gold deposit, subject to a joint exploration agreement with Nippon Caserones Resources Co. Ltd. The project is located in Chile’s Region 111.
The company also has a portfolio of exploration projects in Argentina, including the Valle Ancho project in Catmarca province, and the Potro Cliffs, located in San Juan province approximately five kilometres north of, and on the same major northeast trending structure as the Filo del Sol deposit where Filo Mining Corp. [FIL-TSXV, NASDAQ First North] is drilling a major copper-gold discovery.
Los Helados is located 16 kilometres north of the Filo del Sol deposit. Filo del Sol and Los Helados lie along the same major northeast-trending structure which controls a series of alteration zones, representing high-quality exploration targets, between the two deposits.
Recent drilling at Los Helados returned 1,016.3 metres at 0.65% copper equivalent (CuEq) from a depth of 42 metres, including 294 metres at 0.87% CuEq from a depth of 201 metres, and 140 metres at 0.83% CuEq from a depth of 606 metres.