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Thursday, 26 September 2013
Northern Vertex Mining raises $3.4 mln for Moss mine, extends expiry date for warrants
Northern Vertex Mining Corp. (CVE:NEE) says it has closed a $3.4 million non-brokered private placement financing, reflecting continued support for the company's plan to reactivate the Moss gold-silver heap leach project in Arizona.
In a statement late Wednesday, the company said a total of 5.236 million units were issued, at a price of 65 cents apiece. Each unit is made up of one common share and one half of one share warrant, with every whole warrant allowing the holder to buy one share at a price of 90 cents until February 25, 2015.
Northern is planning to use the proceeds to advance its Moss project, as well as for general corporate purposes.
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 CEO Dick Whittington having taken Farallon Mining's G-9 Mine from discovery to full commercial production in less than four years.
In August, Northern Vertex announced it can officially reactivate the mine after the state governor held a ribbon-cutton ceremony in nearby Bullhead City. The ceremony 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.
Separately, the company also said on Wednesday that it has extended the expiry date of a total of 7.14 million unexercised share purchase warrants.