Argex Mining completes $5.02 mln private placement

Argex Mining (CVE:RGX) has completed a private financing which raised $5.02 million, the company said Thursday.

The offering, which was announced last month, issued 5.4 million shares to a U.S.-based investment fund manager and current shareholder of Argex. Argex priced the issued shares at 93 cents each.

No warrants were part of this private placement, the company said.

The Montreal-based mineral explorer said it would use the proceeds for working capital and general corporate purposes. No commission was paid in connection with the private placement.

"We are very pleased that an important U.S.-based investment fund has increased its shareholdings in Argex," said Argex chief executive Roy Bonnell.

"The decision to invest in Argex is a sign of its confidence in our company, which is to advance towards production of titanium dioxide."

The securities issued are subject to four month hold periods that expire November 6, 2012. Argex has 115.4 million shares outstanding.

In April, Argex struck a technical collaboration contract with PPG Industries (NYSE:PPG) to develop and optimize PPG's technology for titanium dioxide.

The goal is to develop titanium dioxide products, to be produced by Argex, that meet conventional standards for interior and exterior paint and coatings applications.

Argex is a junior Canadian resource company that is developing the advanced stage La Blache titaniferous magnetite project. It also owns the Lac Brûlé high grade ilmenite and the Mouchalagane iron ore projects, which are all located on Quebec’s North Shore.

Argex recently achieved a "milestone breakthrough" for the iron recovery circuit at its pilot plant in Mississauga, Ontario, where its patented CTL process is running continuously.

The company hopes to scale-up its proprietary, hydrometallurgical CTL process that allows it to produce high purity, "pigment-grade" titanium dioxide directly from run-of-mine material at its 100 per cent owned deposit.

The process is running continuously at the mini-plant in Mississauga, Ontario.