Northern Vertex to raise up to $7.5 mln through non-brokered financing

Vancouver-based Northern Vertex Mining (CVE:NEE) announced Tuesday a non-brokered private placement financing, for up to $7.5 million in new funds. 

The company has agreed to issue up to 6 million units at a price of $1.25 each. Each unit will be made up of one common share and one half share purchase warrant, with every warrant good for one more share of Northern at a price of $1.75 for a period of two years. 

The expiry date of the warrants can be accelerated if its shares have closed for 21 straight trading days at a price of $2.00 or greater. 

Northern has also given an over-allotment option to sell up to an additional 2 million units, which can be used any time prior to 48 hours before the closing of the offering.

The miner said it plans to use the new funds to advance its Moss project in Arizona, as well as to maintain other projects and for general corporate purposes. 

The financing is expected to wrap up around November 26, subject to the approval of the TSX Venture Exchange. 

The news comes a day after the Vancouver-based company said it appointed Dick Whittington as president and CEO, effective immediately, replacing previous chief Ken Berry.

Whittington's career spans 35 years with mining companies in Canada, Mexico, Panama, Papua New Guinea  and Australia. The company said his experience includes senior executive and mine management roles that oversaw numerous feasibility studies, mine evaluations, mine development, production, mergers and acquisitions.

The appointment followed the entrance of Ed J. Duda as Northern's new chief financial officer and corporate secretary in September. 

Last month, Northern Vertex filed its NI 43-101 technical report on its Moss gold-silver project in Arizona.

The company filed the report that estimated 956,800 ounces of measured and indicated gold equivalent resources, and 266,340 ounces of inferred gold equivalent resources. 

The inferred resource category as it was filed was higher than the initial 199,100 gold equivalent ounces as announced in its September news statement. 

The company said that on final review and compilation of results by Scott E. Wilson Consulting, an additional 67,240 ounces of gold equivalent resources met the 0.3 grams per tonne (g/t) cutoff criteria, and were therfore added to the inferred resource total. 

Northern Vertex also said that samples from a total of 75 percussion drill holes have been sent for assaying from its current 5,000 metre drilling program at Moss, with results anticipated shortly. 

A rig capable of operating on hillsides is being used to drill closely-spaced holes to provide enough data for mine design and mine planning purposes. 

The Moss mine, in Mojave County, Arizona, is a low-sulfidation epithermal deposit, with a 2 km strike length.