"We are pleased to see the continued market support for the company's plan to reactivate the Moss Mine gold-silver heap leach project," said president and CEO Dick Whittington in a release Wednesday.
"I believe this reflects well on the strength of the Moss Mine Project itself and our ability to implement its development in the foreseeable future. Our immediate goal is to continue with the operations phase of our Phase I - Pilot Plant and to move forward with a feasibility study for Phase II - Operations."
The financing will consist of about 7.7 million units at a price of 65 cents each, with proceeds to be used to advance the Moss project in Arizona, including the completion of the feasibility study.
Northern Vertex said Wednesday that it is possible that due to investor interest, the company could upsize the placement by up to a further 2 million units. Any expansion of the placement must take place within 30 days, the company said, and will be disclosed in a press release.
Each unit of the placement will be made up of one common share and one half of one transferable share purchase warrant. Each whole warrant will allow the holder to acquire one additional common share at a price of 90 cents for a period of 18 months from the closing date.
The financing is expected to wrap up by early September, subject to the acceptance by the TSX Venture Exchange.
The Moss Mine is an open mine gold and silver project in a well-known mining district. Northern Vertex, which has the right to earn a 70 per cent interest in the project from Patriot Gold Corp. (OTCMKTS:PGOL), has about $12 million in working capital and an experienced team in place, with Whittington having taken Farallon Mining's G-9 Mine from discovery to full commercial production in less than four years.
Last week, Northern Vertex announced it can officially reactivate the mine after the state governor held a ribbon-cutton ceremony in nearby Bullhead City. The ceremony, held last week, was accompanied by news that the Vancouver-based miner had reached development milestones on the Phase 1 pilot plant, part of its three-stage development process at the property.