Northfield Capital Corp. [NFD.A-TSX] and the Toronto investment firm’s President Robert Cudney have acquired 2.1 million shares of Copper Reef Mining Corp. [CZC-CSE] for 30 cents a share.
The shares, which represent approximately 9.1% of the issued and outstanding shares of the company, were acquired via a private placement on January 30, 2020.
Copper Reef is a junior mineral exploration company with a specific focus on properties in northwest Manitoba and northeast Saskatchewan. All of the company’s properties are in the exploration stage. Copper Reef says it has assembled a portfolio of base metal and precious metal prospects, all of which are 100%-owned with no option payments or work commitments required by a third party.
Upon completion of the private placement transaction, Northfield, together with Cudney will own almost 4.8 million shares of Copper Reef, and convertible securities entitling Northfield and Cudney to acquire an additional 1.52 million shares, representing approximately 20.6% of the issues and outstanding shares of Copper Reed. The shares were acquired for $635,100.
Copper Reef shares were unchanged at 40 cents on Tuesday and trade in a 52-week range of 16 cents and 52 cents.
News of the private placement to Northfield and Cudney comes just days after Copper Reef said it had launched a 4,300-metre diamond drill program in the Flin Flon camp of Manitoba and Saskatchewan. The company said it will start with a 630-metre program, consisting of five drill holes at its 100%-owned Hanson Lake property in Saskatchewan.
The Hanson Lake property lies on strike and to the north of Foran Mining Corp.‘s [FOM-TSXV] McIlvenna deposit, which is estimated to host more than 22 million tonnes of Indicated and 11 million tonnes of Inferred copper-zinc-silver mineralization. Copper Reef owns a $0.75 per tonne net tonnage royalty on this deposit and on any other ore found on the property.
Initial drilling will concentrate on the 2.5-ko long Hanson Lake Mine horizon. It is the site of a former mine operated by Western Nuclear Mines between 1967 and 1969, which produced 147,000 tonnes of average grade 10% zinc, 5.8% lead, 0.5% copper and 137.0 g/t silver. Copper Reef said there is no evidence of drilling below 200 metres below the bedrock surface.
Initial drilling is expected to be followed by a $1 million exploration program that will include 3,670 metres in the main Flin Flon Camp of Manitoba.