PTX raises $3.4 million, resumes Ontario drilling
PTX Metals Inc. [PTX-CSE] has announced the commencement of diamond drilling at the Heenan Gold Project, located in the Swayze Greenstone Belt of the Abitibi in northeastern Ontario, near the Cote Gold project. The project is held through the South Timmins Mining Joint Venture with Fancamp Exploration Inc. [FNC-TSXV].
The announcement comes after the company closed a previously announced non-brokered private placement of units and flow-through common shares, which raised $3.4 million. The closing of a $150,000 Quebec flow-through private placement at 15 cents per share is expected to close tomorrow (Tuesday), the company said.
PTX Metals shares were active on the news, easing 8.0% or $0.01 to 11 cents. The shares currently trade in a 52-week range of 18 cents and $0.06.
The company said the up a 750-metre drill program is following up on the gold discovery made earlier in 2024. In a press release in February, 2024, the company said a first phase drill program (611.50-metres in three drill holes) was completed over 50-metre spacings
Several consistent wide zones of gold mineralization from surface to 177 metres was intersected in the first program which returned 77.44 metres of 0.40 g/t gold in hold HE23-02 and 27.15 metres of 0.55 g/t gold in hole HE-23-03. An additional zone of mineralization was, outside the iron formation, was encountered in hole 2, grading 5.53 g/t gold over 1.00 metre at 177 metres.
The drill program was following up on mechanized stripping program completed in the fourth quarter of 2023 that discovered gold occurrences in two channel sample composites, including 4.05 g/t gold over 2.00 metres and 2.39 g/t gold over 8.00 metres in Trench 2.
The latest drill program commenced in mid-December, 2024, and then subsequently halted over the holidays and will resume in January, 2025.
Furthermore, the company has arranged an additional private placement of $150,000 with an arms length investor. This private placement is expected to close on December 31, 2024 with the issuance of 1.0 million shares of PTX, priced at 15 cents each. All of the proceeds will be utilized as eligible Quebec flow-through expenditures by the company’s subsidiary Green Canada Corp. (GCC) on its Matoush Project in Quebec. In this regard, all the proceeds will be advanced to GCC increasing PTX’s ownership interest in GCC from 52% to 54% by issuing 1.5 million shares of GCC at 10 cents per share.
PTX recently said it has received approval from the Ontario Junior Exploration Program (OJEP) for $200,000 in funding for the W2 project in northwestern Ontario. The non-dilutive funding allows the company to reclaim exploration activities at W2 carried out between April 1, 2024 and February 28, 2025, and more specifically outlined in a workplan and budget previously agreed upon with a maximum grant amount of $200,000.