PolarX Limited Secures $3.2 Million in Equity Raising to Boost Exploration Efforts
PXX (PXX) Share Update July 2024 Sunday 28th
PolarX Limited Announces $3.2 Million Equity Raising for Exploration Expansion
PolarX Limited (ASX: PXX) has successfully raised $3.2 million through a single tranche placement, aiming to enhance its exploration and drilling activities in Alaska and Nevada.
Instant Summary:
- PolarX raises $3.2 million through a placement of 320 million shares at $0.01 per share.
- Northern Star Resources Limited maintains its 16% holding in the company.
- Funds will be used for drilling at Caribou Dome and evaluating new targets in Alaska.
- Additional funds may be allocated to gold-silver prospects at Humboldt Range in Nevada.
- Placement shares to be issued under Listing Rule 7.1 and 7.1A.
Equity Raising Details
PolarX Limited has announced that it has received firm commitments to raise approximately $3.2 million through a single tranche placement. This involves issuing 320 million new shares at an issue price of $0.01 per share. The placement was strongly supported by both new and existing shareholders, including Northern Star Resources Limited, which will maintain its 16% stake in the company.
The funds raised will be primarily used to extend the current drilling program at the Caribou Dome deposit in Alaska. This includes further testing of historical underground drill results and extending the known mineralization extents. Additionally, the company plans to update the mineral resource estimate and Scoping Study for the Alaska Range Project in the coming months.
Exploration and Drilling Plans
Proceeds from the equity raising will also be allocated to surface geological mapping and geochemical sampling of new targets in the Caribou Dome district. Geophysical surveys at the nearby Senator prospect in Alaska, including ground induced polarization (IP), aerial magnetic, and LIDAR surveys, are also planned.
Moreover, PolarX intends to use part of the funds for a Reverse Circulation (RC) drill program at the Humboldt Range Project in Nevada. This will test the Star Peak induced polarization and soil geochemical anomaly, further exploring the region's significant gold and silver prospects.
Placement and Settlement
The placement shares will be issued under the company's existing capacity under Listing Rule 7.1 and 7.1A. The offer price of $0.01 per share represents a 14.7% discount to the 5-day volume-weighted average price (VWAP) of $0.012 per share. Settlement of the placement shares is expected to occur on Monday, 5 August 2024, with the shares to be allotted and commence trading on Tuesday, 6 August 2024.
Use of Proceeds
The detailed allocation of the $3.2 million raised is as follows:
- Up to $1.0 million for extending the current drill program at Caribou Dome.
- Up to $0.2 million for surface geological mapping and geochemical sampling in the Caribou Dome district.
- Up to $0.2 million for geophysical surveys at the Senator prospect.
- Up to $1.0 million for the RC drill program at the Humboldt Range Project.
- Approximately $0.8 million for general working capital.
The successful equity raising is a positive development for PolarX Limited, providing the necessary funds to expand its exploration and drilling activities. This could potentially lead to the discovery of additional high-grade copper resources, enhancing the returns from the Alaska Range Project. The involvement of Northern Star Resources Limited and other sophisticated investors also adds credibility to the company's prospects.
Investor Reaction:
Investors and analysts have reacted positively to the news, noting that the additional funds will enable PolarX to pursue high-priority exploration targets. The support from Northern Star Resources Limited is seen as a strong vote of confidence in the company's future potential.
Conclusion:
PolarX Limited's successful equity raising marks a significant step forward in its exploration and drilling efforts. Investors should keep a close eye on the company's progress in Alaska and Nevada, as any positive drilling results could have a substantial impact on the stock's performance. Stay informed and consider subscribing to our newsletter for regular updates on PolarX and other stock market news.