NQ Exploration to raise $1.08 mln, and use funds to incur exploration expenses

Junior miner NQ Exploration (CVE:NQE) has hired Industrial Alliance Securities on a best effort basis to raise $1.08 million through a private financing and plans to use the funds to incur Canadian exploration expenses, the company said Tuesday.

The company said it plans to sell 560,000 in flow-through units for $1,120 per flow-through per share and up to 520,000 in units at a price of 65 cents per unit. 

Each flow-through unit is comprised of 10,500 flow-through shares for 85 cents per flow-through share and 3,500 common shares for 65 cents, as well as 3,500 full warrants.

Each unit will be comprised of one common share at a price of 65 cents and one-half of one common share purchase warrant.

Each full warrant gives the holder a right to buy one extra common share of NQ Exploration for roughly 12 cents apiece for 12 months following the closing date.

The miner also said Tuesday it has given the agent a 30 day option following the closing to buy up to 15 percent to cover any over allotments.

Upon the offerings closing, NQ said it would pay Industrial Alliance Securities a cash commission equal to nine percent of the gross proceeds.

Additionally, the agent will get non-transferable warrants for 65 cents apiece for a period of two years after the offerings close to acquire common shares equal to five percent of the number of flow-through shares and units issued.

NQ plans to use the funds generated from the sale of units for working capital and general corporate purposes, while funds from flow-through shares will go toward Canadian Exploration expenses on its mining properties.

The securities issued during this offering will be subject to a four month and one day hold period from the date of closing.

The offering is slated to close on December 20, and is subject to customary and regulatory approvals. 

Last month, NQ reported final results from its summer drilling program at the Carheil project in Quebec, with intersects of high grade silver in the western extension of the Ag1 zone.

Hole CA2011-29 intersected the Ag1 zone at a vertical depth of around 100 metres, the company said, where a 14 metre wide zone grading 131 grams per tonne (g/t) of silver equivalent was returned.

This zone contained an enriched zone, grading a whopping 584 g/t silver equivalent over 1.5 metres.

The Carheil property lies in Brouillan Township in the northern Abitibi region, five kilometres southwest of the old Selbaie mine.

NQ Exploration is a mining exploration company with a portfolio of 11 mining properties in the James Bay and Abitibi regions of Quebec.