MinRex reels in the cash to fund lithium exploration on new Pilbara Projects
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Funds raised through the private placement will also be spent towards exploration within its existing WA and NSW gold-silver-base metal projects.
MinRex Resources’ has secured some $3m of private placements to fund exploration on four new Pilbara lithium projects acquired in November, a major step forward in its plans to become an emergent lithium explorer.
This means MinRex (ASX:MRR) now has more than $4 million in cash to spend on lithium exploration as well as the fast track of activities within existing gold-silver-base metal projects.
Around 93,750,000 shares will be issued at a price of 3.2c per share, reflecting a 13.5% discount to the last close.
MinRex says directors and other related parties have subscribed for 2,343,750 shares as part of the placement for $75,000.
Canaccord Genuity (Australia) Limited acted as lead manager to the placement.
On November 24, the company added four new projects to its portfolio – all within a 70km radius of the third-party Pilgangoora and Wodgina lithium-tantalum mines.
At the time, CEO Pedro Kastellorizos said geological evidence indicates all the project areas host significant lithium bearing pegmatites based on recent rock chip assaying results and the extensive historical tin/tantalum mining over extensive pegmatites.
“Our highly experienced team will be ready for drill testing once the detailed geological mapping/sampling has been completed,” Kastellorizos said.
“Further work will commence immediately on the re-interpretation of airborne magnetic/potassic data to locate the pegmatite on the ground but also defined trends and structures which appear to control the lithium-tin-tantalum mineralisation.”
This article was developed in collaboration with MinRex Resources, 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.