Polarx Ltd to raise up to A$4.7m in funding with drilling set to start in Nevada


PolarX Ltd (ASX:PXX) has accepted firm commitments from investors to subscribe for a placement of 119.6 million shares at A$0.021 per share to raise A$2.51 million before fees with an option free attachment on a 1:2 basis worth 3 cents and expiring in 18 months.

Following the placement, the company will issue a 1 for 8 non-revocable rights issue to eligible shareholders on the same terms to raise up to an additional A$2.19 million.

Leading Melbourne boutique Peak Asset Management led the oversubscribed capital raise.

Humboldt Range Project

The funds raised will be used to advance the company’s projects in the United States, including the initial drilling program at the Humboldt Range Gold-Silver project in Nevada, which will begin next week.

PolarX’s initial drill testing of gold and silver targets on this project will advance analyzes of channel samples confirming a very large drill target for bulk tonnage gold-silver mineralization at Star Canyon in the Black Canyon Lode Claims. Black Canyon is at the northern end of the project.

Drilling is expected to capitalize on the highly anomalous gold and silver values ​​obtained from the first three of 11 recent channel sample runs, including:

  • 54 meters at 17.3 g/t silver and 0.22 g/t gold;
  • 72 meters at 11.7 g/t silver and 0.21 g/t gold; and
  • 138 meters at 2.7 g/t silver and 0.14 g/t gold.

The company also wants to explore several gold-silver targets within the 4th of July claims at the southern end of the Humboldt Range project.

Alaska Range Project

Proceeds from the placement will also be directed to resource expansion drilling at the Alaska Range project’s high-grade Caribou Dome copper deposit in Alaska, to advance historic drilling which included recent high-grade intersections content of:

  • 19.1 meters at 7.0% copper; and
  • 10.7 meters at 7.4% copper.

The planned exploration program will consist of additional core drilling at the Caribou Dome deposit aimed at extending the mineralization laterally and down dip from these high grade intersections.

Metallurgical testing will also be conducted to evaluate options for processing the gold-copper-silver mineralization at Zackly and the potential for co-processing with copper mineralization at Caribou Dome.

The company also expects to complete a scoping study to evaluate the combined mining and processing of the Caribou Dome and Zackly mineralization during the second quarter of the year. This will help determine the minimum size of resources required for a viable project.

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