Felix Gold raises $4.8m to kick off near-term Alaskan antimony production

FXG to raise $4.8m at $0.075 per share for near-term antimony production in Alaska
Alaskan Treasure Creek gold project hosts historic Scrafford antimony mine
US Government is looking to shore up domestic sources after Chinese restrictions came into play

Special Report: Felix Gold has received firm commitments to raise $4.8m at $0.075 per share with the aim of starting near-term antimony production at the historic Scrafford mine at its Treasure Creek gold project in Alaska.

In the wake of Chinese restrictions and a rapidly ascendant price tag, Felix Gold (ASX:FXG) has taken a major step in its ambitions for near-term production from the historic Alaskan mine as the United States moves on securing domestic production.

Already using its supply chain dominance to assert its influence over rare earth and graphite markets, China’s recent restrictions on antimony exports sparked immediate concerns from the US Military and a new wave of interest in its potential miners.

The US currently relies on imports for around 82% of its antimony demand, with the majority coming from the Chinese – a tap now severely tightened.

The main aim of this cap raising is to start operations at the historical Scrafford mine, which the company believes is feasible since the tenements contain two past-producing, infrastructure adjacent and high-grade antimony mines situated within a larger gold-antimony system.

In a presentation released to the ASX, the company has outlined their fast-tracked antinomy strategy – including the aim to commence mining in 2025 and an objective to produce up to 5,000 tonnes per annum. Current antimony prices are hovering around US$25,000 per tonne.

Funds raised from the placement will be used to progress development and exploration activities across the company’s projects, including permitting, trenching, drilling and engineering studies.

Accelerating antimony production

The placement was strongly supported by both existing shareholders and new investors, and was anchored by one of North America’s largest asset managers who will become a substantial holder following allotment.

“We are thrilled by the strong support for this placement and would like to thank existing shareholders for their support and welcome new investors,” Felix Gold (ASX:FXG) executive director Joseph Webb said.

“This is a crucial milestone towards our ambition of near-term antimony concentrate production at Treasure Creek, representing a potentially significant value-generating strategy that complements our existing gold projects.”

The company will issue 64,000,000 fully paid ordinary shares at an issue price of $0.075 per share – a discount of 12.8% to the last traded price prior to the trading halt of $0.086.

Click here to hear directly from Felix Gold Managing Director Joseph Webb on the company’s ambitions.

This article was developed in collaboration with Felix Gold, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.