Due to strong demand, NGEx Minerals (TSXV: NGEX) has elected to more than double its private placement financing from $40 million to $85 million, issuing approximately 13 million common shares at $6.50 each instead of 6.1 million shares.
As indicated in a press release Thursday, NGEx’s largest shareholders, being three entities that comprise the Lundin family trusts, plan to subscribe for up to $40 million of the placement. The company spun out of the Lundin Group in 2019.
The net proceeds will be predominantly used for its Lunahuasi exploration project in San Juan province, Argentina, and Los Helados project in Region III, Chile, as well as the repayment of a US$3 million credit facility.
NGEx is the majority partner and operator for the Los Helados copper-gold project, the main asset of the Lundin spinout. The project is subject to a joint exploration agreement with Nippon Caserones Resources, which is the 49% owner of the Caserones open pit copper mine.
Lundin Mining recently took a 51% stake in Caserones after signing a US$950 million deal with JX Nippon Mining & Metals. It has the right to up its interest to 70% by paying another US$350 million.
NGEx’s Los Helados project is located approximately 15 km south of Caserones. It has indicated resources of 2.1 billion tonnes grading 0.38% copper, 0.15 g/t gold and 1.37 g/t silver and inferred resources of 827 million tonnes at 0.32% copper, 0.10 g/t gold and 1.32 g/t silver.
Shares of NGEx gained 3.7% by 11:30 a.m. in Toronto following the upsized private placement. The company has a market capitalization of $1.15 billion.
THIS ARTICLE WAS ORIGINALLY POSTED ON MINING.COM
