- ATEX Resources (ATX) is looking to raise up to C$5 million to fund drilling work at its Valeriano copper-gold project in Chile
- The company intends to issue an unspecified number of units at a price of $0.20 each, consisting of one common share and one purchase warrant
- Each warrant will entitle the holder to acquire an additional share at a price of $0.30 over a period of 24 months
- The proposed 7,500-metre drill program will focus primarily on infill and resources expansion work at a near-surface oxide gold deposit
- ATEX Resources (ATX) is currently steady at $0.26 per share
ATEX Resources (ATX) is looking to raise up to C$5 million to fund drilling work at its Valeriano copper-gold project in Chile.
Under the terms of the placement, the Vancouver-based company intends to issue an unspecified number of units at a price of $0.20 each. These units will consist of one common share in ATEX Resources and one common share purchase warrant.
Each whole warrant will entitle the holder to acquire an additional share at a price of $0.30, exercisable over a period of 24 months from the date of issuance.
Mackie Research Capital and Canaccord Genuity will act as co-lead agents for the placement, and have been granted an option to purchase an additional 15 per cent of the total number of units on offer. They will also receive a cash fee worth six per cent of the total amount raised, and will be issued compensation warrants equal to eight per cent of the total number of units sold.
These warrants will be exercisable at a price of $0.20 per share for a period of 12 months.
ATEX Resources intends to use the proceeds to fund a 7,500-metre drill program at the Valeriano Project, which will focus on infill and resource expansion work at a near-surface oxide gold deposit.
The deposit is thought to contain 584,684 ounces of gold and 2,653,895 ounces of silver within 34.4 million tonnes of ore, based on grades of 0.528 grams per tonne of gold and 2.4 grams per tonne of silver.
A portion of the proceeds will also be used to support metallurgical studies, geophysical surveys, mapping, trenching and sampling at Valeriano, as well as other regional exploration activities.
ATEX Resources (ATX) is currently steady at $0.26 per share, as of 1:48pm EDT.