TerraX raising $3 million for NWT exploration

Sampling on the Southbelt property of the Yellowknife City Gold Project, Northwest Territories. Source: TerraX Minerals Inc.

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TerraX Minerals Inc. [TXR-TSXV, TRXXF-OTC Pink, TXO-Frankfurt] said Friday it has struck an amended deal with an underwriting syndicate led by PI Financial Corp. to upsize a previously announced bought deal financing to $3 million.

Under the terms of the offering, the underwriters have agreed to purchase 1.5 million common shares of TerraX for 36 cents per share, 2.3 million flow-through common shares at 41 cents each and 3.0 million charity flow-through shares at 50 cents each.

TerraX has also granted the underwriters the option to acquire additional shares equal to 15% of the offering on the same terms at any time up to two days before the offering closes.

Proceeds from the financing will be used to fund exploration expenses at the company’s Yellowknife City Gold Project in the Northwest Territories.

The Yellowknife City Gold (YCG) project covers 772 square kilometres of contiguous land, north, south and east of the City of Yellowknife.

YCG lies on the prolific Yellowknife greenstone belt, covering 70 kilometres of strike length along the main mineralized break in the Yellowknife gold district, including the southern and northern extensions of the shear system that hosted the high-grade Con and Giant gold mines.

The Giant Mine produced 7.0 million ounces of gold from 1948 to 2004.  The Con mine produced over 5.0 million ounces of gold from 1938 to 2003.

The YCG project contains multiple shears that are the recognized hosts for gold deposits in the Yellowknife gold district, with innumerable gold showings and recent high-grade drill results that serve to indicate the project’s potential as a world class gold district.

TerraX recently added to its holdings in the Yellowknife area by striking a deal to the Ptarmigan Mine property.

Ptarmigan is a former mine that produced 112,213 ounces of gold, averaging 9.56 grams per tonne from 1941-43, in 1983, and from 1985 to 1997.

The main Ptarmigan vein was accessed by a shaft extending to a depth of 275 metres. It was mined over a strike length of 400 metres.

When the mine closed in 1997, the vein was still open along strike to the west on claims now owned by TerraX, and open down dip below the mine workings.

“With paved road access from Yellowknife, and high tension powerlines connected to the former mine site, Ptarmigan, with exploration success, could easily be brought back to life,” said company has said.

Meanwhile, in a May 8, 2019, press release, TerraX President and CEO David Suda said the company has recently gone through significant changes and achieved several key milestones. “This work has brought us to a major inflection point in the company’s history and has put TerraX on the verge of what could be a very significant discovery,” he said.

In that press release, the company said it is finalizing details of a 2019 exploration program that will build off the technical and operational successes achieved in 2018.

Those include the identification of four priority targets located within a 10 kilometre long and 4.0 kilometre major flexure of the main Yellowknife Gold District Shear Zone known as the Barney Deformation corridor.

This has led to a focus on deposit expansions at the Crestaurum and Sam Otto areas as well as the advancement of targeting on the North Giant Extension within the Barney Deformation Corridor.

Earlier this year, TerraX confirmed the extension of gold mineralization on structures that hosted the Giant Mine onto TerraX property. The company has said it will conduct surface work, including geophysical and geochemical surveys for future drill targeting, as well as continuing a review of historical core data.

On Friday, TerraX shares eased 5.26% or $0.02 to 36 cents. The shares are currently trading in a 52-week range of 32.5 cents and 50 cents.

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