Marifil Mines to raise up to $1 mln through non-brokered financing for exploration

Marifil Mines (CVE:MFM) says it will raise up to $1.0 million through a non-brokered private placement financing for exploration and development activities on its properties in Argentina. 

The company said Monday that it will issue up to 20 million units at 5 cents each, with each unit to be made up of one common share and one share purchase warrant. 

Every warrant will allow the holder to buy another common share of the company at a price of 10 cents for 60 months from offering's close. 

The expiry date of the warrants can be accelerated subject to Marifil's trading price. Marifil said that insiders, management and other existing shareholders have already agreed to subscribe for up to $200,000 of the financing. 

The deal is expected to close on about February 25, subject to approval from the TSX Venture Exchange. 

The new funds will be used for exploration and for general working capital. 

Late last month, shares of Marifil Mines rose after the company revealed preliminary metallurgical results from the Zone 34 oxide gold target at its San Roque project in Argentina, saying it found high gold recoveries.       

The bottle roll cyanide recovery tests were meant to determine the amenability of the oxide mineralization to heap leach gold extraction, the company said, calling them "highly successful". 

It added that it plans to move forward with further testing and drilling of this gold deposit. 

Marifil is a Canadian exploration company that focuses on Argentina. Through its joint venture opportunities, it has been able to develop a diverse portfolio of properties, including several with bonanza grade gold, silver, copper and indium values.

The company has a land position of 20 properties, totalling more than 400,000 hectares within nine provinces of Argentina. It recently resumed the operator role at its Las Aguilas property after miner Prophecy Platinum (CVE:NKL) decided not to move forward with their joint venture agreement. 

In December, it also regained ownership of the Mina El Carmen oil and gas property in Chubut Province, Argentina.