Strategic investor locked in as FXG moves towards antimony production

1832 Asset Management has invested $2m into FXG to become a substantial holder
FXG is aiming to be producing up to 5,000 tonnes of antimony by next year
Significant news flow is expected over the coming months

Special Report: 1832 Asset Management has taken a position in Felix Gold, after investing a total of almost $2m to become a substantial holder.

Felix Gold (ASX:FXG), one of Stockhead’s biggest Ressie winners for the month of September, is currently exploring its historic Treasure Creek landholding in Alaska’s prolific Fairbanks gold district.

Gold production in the region exceeds some 16Moz, with FXG’s leases sandwiched between Kinross’ 11.8Moz Fort Knox mine and Freegold Ventures’ 19.7Moz Golden Summit project (18km away).

From March to April, FXG shares rose from 3c to 8c, when the company revealed the NW Array target within Treasure Creek was an open-at-surface, oxide and flat-lying 2km by 600m gold system with the ability to be fast-tracked into production due to its proximity to the mill at Fort Knox.

By June, Felix had proved up a global resource of 831,000oz gold at its Fairbanks assets (with the addition of NW Array) and despite a drop in share price, there was forward momentum towards the development of the gold assets.

Its share price started to go gangbusters in August, punching 13c after China placed export restrictions on antimony, a commodity found at Treasure Creek that occurs with particular types of gold mineralisation. The metal is used heavily in military tech, battery technologies, semiconductors and to strengthen alloys.

Big resources backer in FXG’s corner

In the wake of announcing an antimony fast-track strategy to the ASX, including the aim to begin mining in 2025 producing 5,000t per annum of antimony, FXG has received endorsement from one of Canada’s largest asset managers, 1832 Asset Management.

182 Asset Management poured $2m into FXG through a combination of being a cornerstone in a $4.8m recent placement and on-market buying.

The asset manager is backed by the Bank of Nova Scotia – a C$88 billion financial services giant whose asset management division has particular expertise in gold exploration, development and mining.

1832 is also one of the largest investors in Kinross Gold Corp (NYSE:KGC), with a US$67 million position in the Fort Knox mine owner.

Putting placement funds to work

1832 has also invested in gold explorer Spartan Resources (ASX: SPR), which has seen a 1200% share price increase in less than 2 years.

FXG raised $4.8m at $0.075 per share last week, strongly supported by both existing shareholders and new investors.

As FXG continues to execute on its aspiration to be in antimony production, the explorer is now starting to put the funds raised to work with recent trenching activities showing visible signs of high-grade stibnite at surface.

High-grade stibnite at surface. Pic: Felix Gold

With the favourable price action of antimony in the face of China restricting exports to the US, leaving the US scrambling for supply, FXG believes this is the most significant era for value creation.

The company is expecting quite a bit of news flow over the coming months on its path to production.

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.