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Tuesday, 6 November 2012
Tirex Resources arranges $7.7 mln financing for Mirdita exploration
Vancouver-based Tirex Resources (CVE:TXX)(OTCQX:TIRXF) has arranged a $7.7 million financing, which the miner says puts it in "excellent financial condition" as it plans to target new discoveries while also starting gold and copper production from its Albanian licenses.
The news announced late Monday night follows Tirex's announcement last month that it received the official seal from the Albanian Ministry of Economy, Trade and Energy to convert its six exploration licenses in the region to 25-year mining licenses, paving the way for near-term production.
The six specific areas, for which conversion to exploitation licenses were ordered with immediate effect, are located in the Mirdita volcanogentic massive sulfide (VMS) district.
VMS deposits are a type of metal sulfide ore deposit, and are created by volcanic-associated hydrothermal events in submarine environments.
The company already has a partnership agreement relating to copper, gold and silver production from the six areas for which it was granted a mining license, meaning it can fast track to production without corresponding share dilution. This is because it has access to mill capacity and underground mine development capital through its mining partnership.
Tirex said Monday it also has more than 40 high priority airborne electromagnetic (EM) anomalies at Mirdita and has identified six exploration areas for immediate ground geophysical surveying and drilling, outside of the mining partnership zones.
The institutional non-brokered private placement financing the company has arranged, which will be used strictly for exploration, will consist of 11 million common shares at 70 cents each.
In addition to these proceeds, the company has around $1.91 million undrawn under its facility with the European Bank for Reconstruction and Development.
"This financing will put Tirex in solid shape as we embark on a most exciting year ahead during which we aim to build value for shareholders through gold and copper production as well as extensive drill testing of high priority targets," said CEO Bryan Slusarchuk.
So far, the company said drilling in Mirdita has included thick intercepts of high grade mineralization, including 65 metres of 0.6% copper, 9.0% zinc, 48.4 grams per tonne (g/t) silver and 2.7 g/t gold.
Other notable intercepts included 7.7 metres of 5.23% copper, 1.84% zinc, 57 g/t silver, and 4.6 g/t gold.
The company has also bulked up its management in the past year, appointing a new president, director and special advisor, as well as completed mining plans for the six separate areas of Mirdita.
Tirex has compiled both historical and its own data from outside of these six areas, which is expected to aid in the exploration process.