- ALX Resources (AL) says it’s poised to take on drilling programs with a C$4 million equity facility through Alumina Partners Ontario
- Over a 24-month period, the company will be able to draw down equity private placement tranches of up to $250,000
- Each tranches will be made up of units in ALX Resources, with each unit to be comprised of one common share and one share purchase warrant
- These warrants will have an exercise price at a 25 per cent premium compared to the market at the time of issuance and an exercise term of 36 months
- ALX Resources is currently up 6.25 per cent to 8.5 cents per share
ALX Resources (AL) says it’s poised to take on drilling programs with a C$4 million equity facility through Alumina Partners Ontario.
According to the terms of the 24-month-long investment agreement, ALX Resources will be able to draw down equity private placement tranches of up to $250,000.
Each tranche will be comprised of units in ALX Resources, and each unit will consist of one common share in the company and one common share purchase warrant.
These warrants will have an exercise price at a 25 per cent premium compared to the market at the time of issuance and an exercise term of 36 months.
“This facility provides ALX with an alternative form of financing as we enter 2021 in the midst of a strong commodities cycle,” said Warren Stanyer, Chairman and CEO of ALX Resources.
“ALX is poised to execute drilling programs on its Canadian properties and welcomes this financing option for the company,” he added.
Each draw down from the facility will require approval from the TSX Venture Exchange, and all of the securities issued by ALX Resources will be subject to a statutory holding period of four months and one day.
“Between their interests in gold, nickel, copper and uranium, ALX is well-positioned to capitalise on a variety of bullish market forces,” said Adi Nahmani, Managing Member of Alumina.
“We are confident in management’s vision and expertise, and look forward to seeing what 2021 will bring,” he concluded.
Alimina Partners Ontario is an affiliate of New York-based private equity firm Alumina Partners LLC.
ALX Resources is currently up 6.25 per cent to 8.5 cents per share at 1:07pm EST.