NGEx Minerals Plans Major Investment with C$100 Million Fundraising
NGEx Minerals Plans Major Investment
NGEx Minerals Ltd. (TSX: NGEX, OTCQX: NGXXF) is gearing up for a transformative move with a private placement aimed at raising C$100 million through the issuance of common shares. This exciting initiative promises to bolster the company’s exploration activities and support future projects.
Details of the Private Placement
Scope of the Offering
The company plans to offer up to 4 million common shares, priced at C$25.00 per share. This significant fundraising is intended to generate gross proceeds of up to C$100 million. The anticipated net proceeds will empower NGEx to advance its exploration strategy at the Lunahuasi project, a key area for the company.
Exploration and Project Development
Funds from the private placement will primarily be allocated towards exploration programs in the Lunahuasi project in Argentina. Should the necessary permits be secured, the construction of an exploration adit along with supporting infrastructure will commence. Additionally, part of the capital will address continued exploration and maintenance of the Los Helados project located in Chile's Region III.
Regulatory Approval and Completion
The successful completion of the private placement is contingent on obtaining necessary regulatory approvals, including from the Toronto Stock Exchange. The common shares will be issued in compliance with exemptions under applicable securities laws, involving a statutory hold period of four months and one day post-issuance. NGEx may also engage finders for a 5% fee tied to a segment of this offering.
Shareholder Support and Participation
The Lundin Family Trusts, which are significant stakeholders in NGEx, have shown a strong commitment by signaling their intention to participate in this private placement. They plan to invest up to C$100 million to sustain their portfolio in the company, reflecting the trust in NGEx’s strategic direction and potential.
Spin-Out of LunR Royalties
Future Royalties Structure
Excitingly, the private placement is expected to close before the forthcoming spin-out transaction. This involves dispersing net smelter returns royalties from both the Lunahuasi and Los Helados projects into a newly formed subsidiary, LunR Royalties Corp. This move, conducted under a statutory arrangement, will allow NGEx shareholders to retain value through new shares in LunR Royalties alongside their existing shares.
Shareholder Approvals
Implementation of this arrangement has received prior approval from shareholders. A special meeting held recently confirmed this direction, post which a court order from a relevant authority will ensure all measures are in place for a smooth transition.
About NGEx Minerals
NGEx Minerals is a Canadian exploration company focused on copper and gold resources, with primary operations at the Lunahuasi project. The firm also has a prominent stake in the Los Helados copper-gold project. Both projects are strategically located in South America’s prospective Vicuña District, which is home to significant mining entities.
Investor Information
Investors eager to understand more about NGEx Minerals can find additional information on the SEDAR+ platform. The company is committed to transparency and providing timely updates as it progresses with its initiatives and plans.
Frequently Asked Questions
What is the purpose of NGEx Minerals' C$100 million private placement?
The funds will primarily be used to advance exploration initiatives at the Lunahuasi project and support ongoing operations at the Los Helados project.
Who is participating in the private placement?
The Lundin Family Trusts have expressed their intention to invest significantly, thereby underscoring their commitment to the company's future.
When can investors expect the private placement to close?
Completion of the private placement is expected as soon as regulatory approvals are obtained, highlighting an efficient timeline for moving forward.
How will the private placement impact existing shareholders?
This placement will enable existing shareholders to maintain and potentially enhance their investment value due to increased funding for project development.
Where can additional information about NGEx Minerals be accessed?
Investors can obtain further details on the SEDAR+ platform and on the company’s official website, where updates and disclosures are regularly posted.
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