PolarX (ASX:PXX) launches $2.51 million exploration placement – ​​The Market Herald


Be the first with news that moves the market

  • PolarX (PXX) Receives $2.51 Million in Funding to Support Exploration Activities at Its Humboldt Range and Alaska Range Projects
  • Company launches $2.51 million offering by issuing more than 119 million shares at 2.1 cents each
  • PolarX will then seek to raise an additional $2.19 million through a one-for-eight non-waivable rights issue.
  • The funds will be specifically used for an upcoming drilling program at the Humboldt Range as well as drilling and studies at the Alaska Range project
  • PolarX ended Thursday’s session in the red, with shares closing at 2.4 cents

PolarX (PXX) is receiving a $2.51 million funding boost just ahead of the start of drilling at its North American projects.

The company emerged from a trading halt today as it announced it had secured firm commitments for the $2.51 million placement which will include the issuance of 119.6 million shares at a price of 2.1 cents each.

The placement also comes with a free attachment option on a one-for-two basis with options to exercise at three hundred within 18 months.

Following the placement, PolarX will launch a one-for-eight non-transferable rights offering to eligible shareholders to raise up to an additional $2.19 million in addition to investment funds.

Peak Asset Management is acting as Lead Manager for the placement and will be
paid a six percent commission on investment funds.

If the materials stock raises at least $4 million through the placement and rights issue, it will issue Peak Asset Management with 30 million options exercisable at three cents no later than April 1, 2025. This is subject to shareholder approval, but if shareholders fail to obtain shareholder approval, the lead manager will receive cash compensation of equivalent value.

PolarX plans to use the money from the placement to drill the Humboldt Range project in Nevada, which is expected to begin next week.

The funds will also be used for drilling at the Caribou Dome deposit in the Alaska Range project, as well as metallurgical studies and a scoping study in the Alaska Range.

Funds raised from the rights issue will provide additional funding for the proposed 2022 exploration program at Caribou Dome.

PolarX ended Thursday’s session in the red, with shares closing at 2.4 cents.

Tana T. Thorsen