Metalex Ventures is planning to carry out a private placement to raise $1,2 million at $0.085 per flow-through share and non-flow-through units at $0.07 per unit.Each unit is comprised of one non-flow-through common share and one-half of one share purchase warrant, with each whole warrant exercisable at $0.10 for two years.
Metalex said proceeds from the sale of the units will be used to advance the recently acquired Viljoenshof Diamond Project in South Africa and for general working capital.
The company reached an agreement with Invest in Property 126 (IIP) early this month to acquire an interest in the 3,373-hectare Viljoenshof prospecting license, in South Africa.
The license area, within 30 kilometres of the famous Kimberley Diamond Mines, was last known to have been explored by DeBeers in the 1960s, with two kimberlite pipes, two kimberlite dykes and two kimberlites of the unknown type discovered.
DeBeers unsuccessfully applied for the exploration license over this area again in 2014, as IIP applied shortly beforehand and was awarded the license.
Meanwhile, Metalex said proceeds from the sale of the flow-through shares will be used to finance qualified exploration on the company's three recently staked gold claims in Quebec and exploration in search of up-ice source areas of 46 additional highest priority gold anomalies.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
