In a news release, Group Ten Metals Inc. (PGE:TSX.V; PGEZF:OTCQB; 5D32:FSE) reported that it has closed its previously announced CA$4.5 million financing, subject to the final approval of the TSX Venture Exchange.
The company advised that 22.5 million units were issued in total at a price of CA$0.20 per unit and that each unit consists of one common share of Group Ten Metals along with one share purchase warrant. The firm indicated that each warrant will be valid for 36 months until July 17, 2023, and will allow the holder the option to acquire one additional common share of the company at a price of CA$0.30 per share; the four month holding period expires November 18, 2020.
The company also stated that it intends to utilize the proceeds from the offering primarily for funding exploration activities at its Stillwater West platinum group element (PGE)-Ni-Cu-Co project in Montana, and also for general working capital.
The company's President and CEO Michael Rowley commented, "We are pleased to welcome a number of experienced mining investors to Group Ten through this placement including a lead order from Palisades Goldcorp Ltd. alongside other new institutional investors...The additional funding will enable an expanded program at our flagship Stillwater West project where we own the second largest land position in the Western hemisphere's most productive PGE district, adjacent to Sibanye-Stillwater's three world-class palladium-platinum mines."
"Our work at Stillwater West has demonstrated the potential for multiple "Platreef-style" deposits – bulk tonnage nickel and copper sulphide mineralization enriched in palladium, platinum, gold, rhodium and cobalt – in the lower Stillwater Complex stratigraphy, based on known parallels with South Africa's Bushveld complex. Our world-class team quickly advanced that geologic model through drill confirmation in 2019, and this year's program is expected to continue that pace as we advance drill-defined mineralized zones towards maiden resources at the three most advanced target areas," Rowley added.
Rowley stated that the company is now commencing phase two of its 2020 campaign that will focus on conducting Induced Polarization geophysical surveys over the most advanced target areas with phase three expected to start there in early August with step out expansion drilling. Additionally, as announced in May 2020, the company is continuing to actively work its high-grade gold target sites.
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