PolarX will undertake a $4.3 million rights issue, less than a week after it secured the same amount via an earn-in investment from Lundin Mining.
The copper and gold explorer said the offer would comprise of a non‐renounceable, one‐for‐seven rights issue at 8 cents per share.
The offer represents a 17.5 per cent discount to its prior closing price.
PolarX said proceeds from the rights issue will primarily fund upcoming exploration at the Zackly and Caribou Dome prospects in its Alaska Range project.
Earlier this week, Subiaco-based PolarX announced it received $4.3 million from Lundin Mining to secure 14.3 per cent of PolarX and an exclusive option to earn a 51 per cent interest in PolarX’s Stellar development, located in its Alaska Range project.
Lundin will obtain the 51 per cent interest by staged spending of $US24 million on exploration and staged payments to PolarX of $US20 million.
Shares in PolarX were up 8.25 per cent to trade at 10 cents each at 1pm AEST.
