PNX Metals Limited has raised almost $3 million in a rights issue to support development of a zinc-gold-silver operation in the Pine Creek region 170 kilometres south of Darwin, in the Northern Territory.
The total amount raised (before costs) was $2,809,701 from acceptances of 936,566,912 new shares at an issue price of $0.003 per share, representing an approximate 63.2 per cent take-up (including oversubscriptions).
The company’s largest shareholder, DELPHI Unternehmensberatung Aktiengesellschaft, took up its full entitlement.
PNX now intends to realise the potential of its Fountain Head gold and Hayes Creek gold-silver-zinc projects after a prefeasibility study mid last year highlighted a multi-commodity development with an initial mine life of at least 10 years, a pre-tax net present value of $171m and a pre-tax internal rate of return of 63 per cent.
“The company looks forward to adding significant value for its shareholders through exploration and development activities at the 100% owned Fountain Head gold, and Hayes Creek gold, silver zinc projects, located in the Pine Creek region, 170 km from Darwin,” the company said.
The money raised will support PNX to complete and submit Mine Management Plans, and progress approvals and engineering at the Hayes Creek Zinc-Gold-Silver Project. It will also support the submission of operational mine management plans and early site activities at the nearby Fountain Head Gold Project, where PNX was last week granted environmental approval.
The approval enables PNX to dewater the existing flooded Fountain Head Pit void, expand the pit to a depth of 160 metres by drilling and blasting, recommence mining of the Fountain Head Pit and construct new infrastructure to enable gold production from the mined resource.
Additionally, near-mine and regional exploration will re-start shortly with a focus on two newly identified highly prospective ‘gold’ corridors containing multiple high-priority drill targets on the northern leases within the Burnside exploration project.