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Thursday, 11 October 2012
Temex Resources closes two separate financings for a total of $8.9 mln
Toronto-based Temex Resources Corp. (CVE: TME) said Thursday it has closed two separate financings, raising a total of $8.9 million.
The first brokered offering, led by Stifel Nicolaus Canada, was made up of a total of 22.67 million units at 28 cents each, as well as 6.25 million flow through shares at 32 cents each, for total proceeds of $8.3 million.
Every unit consisted of one common share and one half share purchase warrant, with whole warrants good for another share of the company at a price of 40 cents each, for a period of two years.
Temex said that 4.82 million units were sold under an over-allotment option, which was exercised in full.
The company also said Thursday that it closed a separate non-brokered private placement financing, in which it raised roughly $0.6 million. Both units and flow through shares were sold on the same terms as the brokered financing.
The new funds raised from the sale of all the flow through shares will be used for exploration expenses on its precious metals properties, while the proceeds from the sale of all units under the offerings are expected to be used for exploration and working capital.
Temex said an institutional investor, owning more than 10 per cent of Temex prior the financings, subscribed for a total of 7.1 million units and 2.66 million flow through shares under the brokered offering.
The financing also included participation from company officers and directors, who acquired a total of 240,000 units.
The Canadian exploration company is currently focused on its Timmins Whitney property, in partnership with Goldcorp (TSE:G), and its Juby gold project.
Last month, the company released its initial NI 43-101 mineral resource estimate for the Upper Hallnor portion of the Whitney gold property.
Temex is the operator of the joint venture project and holds a 60 per cent stake, while Goldcorp holds the remaining 40 per cent.
Highlights from the resource estimate for the Upper Hallnor in-pit, at a 0.30 grams per tonne (g/t) gold cut-off grade, include a measured resource of 232,100 ounces contained in 2.96 million tonnes at a grade of 2.44 g/t gold, and an indicated resource of 544,000 ounces contained in 8.66 million tonnes at a grade of 1.95 g/t gold.
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.
Temex said previously that more drilling will be conducted on several near-surface target areas of the Whitney property, where the company has seen potential for significant expansion of the current resource.
In July, the company announced it had discovered a new high grade gold zone at its Juby gold project, “significantly” extending the known gold mineralized trend.
The Juby deposit contains an NI 43-101 compliant gold resource of 934,645 ounces at a grade of 1.30 g/t in the indicated category plus 905,621 ounces at a grade of 1.0 g/t in the inferred category.
The company said at the time that the “excellent continuity of gold mineralization” from the Juby resource now extends over 3.5 kilometres.
Temex also has an NI 43-101 compliant resource for tailings material on its Gowganda silver project in Ontario. The tailings piles contain a NI 43-101 compliant resource of 1.94 million tonnes grading 47.5 g/t silver for a contained resource of 2.96 million ounces of silver in the indicated category.