Argex Mining to raise $5.02 mln through private placement

Argex Mining Inc. (CVE:RGX) plans to raise $5.02 million through a non-brokered private placement, the company said Tuesday.

The mineral explorer aims to sell 5.4 million shares priced at 93 cents each. There are no warrants in this financing.

Argex, which has 109.9 million shares outstanding, will not pay any commissions it said in a statement. It is expected that the financing will close on June 29.

The Montreal-based firm will use proceeds to fund working capital and general corporate purposes, it added.

In a statement, Argex Mining's chief executive Roy Bonnell, said: "In this volatile market, this financing represents a vote of confidence in our company and in our business plan, which is to advance towards production of titanium dioxide."

After closing, Argex will have about $10 million in liquidity. The placement was approved by TSX Venture Exchange.
The securities issued are subject to a four-month hold period.

In April, Argex struck a technical collaboration contract with PPG Industries (NYSE:PPG) to develop and optimize PPG's technology for titanium dioxide.

The goal is to develop titanium dioxide products, to be produced by Argex, that meet conventional standards for interior and exterior paint and coatings applications.

Argex is a junior Canadian resource company that is developing the advanced stage La Blache titaniferous magnetite project. It also owns the Lac Brûlé high grade ilmenite and the Mouchalagane iron ore projects, which are all located on Quebec’s North Shore.

Argex recently achieved a "milestone breakthrough" for the iron recovery circuit at its pilot plant in Mississauga, Ontario, where its patented CTL process is running continuously.

The company hopes to scale-up its proprietary, hydrometallurgical CTL process that allows it to produce high purity, "pigment-grade" titanium dioxide directly from run-of-mine material at its 100 per cent owned deposit.

The process is running continuously at the mini-plant in Mississauga, Ontario.