Temex Resources announces $6.99 mln private placement financing

Temex Resources Corp. (CVE:TME)(FWB:TQ1) said today it has agreed to raise up to $6.99 million in a private placement financing to be used for exploration expenses on its precious metals properties. 

The agreement with Stifel Nicolaus Canada will consist of up to 17.85 million units at a price of 28 cents each, and up to 6.25 million flow-through shares for 32 cents each. 

Each of the 17.85 million units will be made up of one common share of Temex, and one half of a share purchase warrant, with each whole warrant giving the holder a right to buy another share for 40 cents for up to 2 years. 

Stifel is the sole lead agent of a syndicate in the offering, which is expected to close around October 11, subject to regulatory approvals. 

Temex said the new funds from the flow through shares will be used to incur exploration expenditures, while proceeds from the sales of units will be used for exploration and working capital purposes. 

As part of the deal, the miner has agreed to give Stifel an over-allotment option, which can be used up to 48 hours prior to the closing of the financing. The option will allow Stifel to offer up to another 20 per cent of the number of flow through shares or units issued. 

Earlier this month, Temex released its initial NI 43-101 mineral resource estimate for the Upper Hallnor portion of the Whitney Gold Property in Timmins, Ontario. 

Temex is the operator of the joint venture project and holds a 60 per cent stake, while Goldcorp Canada Ltd. (TSE:G) holds the remaining 40 per cent.

The property now contains a total measured and indicated resource of 776,100 ounces at a grade of 2.07 g/t gold.

Temex noted that the resources have been delineated within 17 domains on the Upper Hallnor portion of the Whitney property, in an area next to the past-producing Hallnor Mine. The in-pit mineralization is defined to a depth of 480 metres from surface.

The Whitney property is situated along a four kilometre section of the Porcupine-Destor Fault in a 10 million ounce mine trend within Canada's largest gold camp. The property hosts three past-producing mines: Hallnor, Bonetal and Broulan Reef.