TORONTO (miningweekly.com) – Sudbury-focused project generator Sudbury Platinum (SPC) has closed a C$3.18-million financing after issuing 8.69-million flow through common shares at a price of $0.33 a share, 148 649 Flow Through common shares at a price of $0.37 each and 850 000 common shares at a price of $0.30 apiece.
Significantly, the private company reported Wednesday that of the total financing, $2.25-million was raised through a bought non-brokered private placement by a group of agents including Red Cloud Mining Capital and Resource Capital Fund VI.
“We are pleased to have completed a substantial and important financing. Proceeds will be used to carry out an 18 000 m diamond drilling campaign at our Aer-Kidd nickel/copper/platinum group metals property near Sudbury to test major mineralised trends at depth and to complete borehole geophysical surveys in historic drill holes at the newly acquired Lockerby East and West Graham properties, in the Sudbury Basin. Drilling at Aer-Kidd is expected to commence in April,” SPC CEO Scott McLean stated.
The agents received a cash commission of 8% on $482 723 of the offering sourced and common share purchase warrants equal to 8%, exercisable for 36 months at a price of $0.35. Haywood Securities received the same commission on $75 000 sourced.
Following the financing, SPC had 41.09-million shares issued and outstanding and 45.82-million shares on a fully diluted basis. TSX-V-listed Transition Metals owned 15-million SPC shares, or 36% valued at about $4.5-million.
The Aer-Kidd property comprised about 260 ha, located about 20 km south-west of Sudbury, and covering a 1.3 km section of the Worthington offset dyke, in an area with a rich mining history dating back to the 1800s. The property was believed to hold significant potential at depth.
The Aer-Kidd property was about 2.6 km along strike to the north-east of Vale's Totten mine, which was currently in production and had 10.1-million tons, grading 1.5% nickel, 1.97% copper and 4.8 g/t PGMs, and was 4.3 km to the south-west and along trend of KGHMs Victoria mine, which was currently being developed and had about 14.5-million tons grading 2.5% nickel, 2.5% copper and 7.6 g/t PGMs.
The Aer-Kidd property hosted the former producing Howland pit and Robinson and Rosen mines, which were small deposits exposed at surface and were mined down to a maximum depth of 300 m.