NordX Metals proposes C$2.4M placement at C$0.30 per unit
The non-brokered offering would add up to 8 million shares and 4 million warrants, with proceeds for exploration and working capital.
Mara Quinlan
NordX Metals Corp. CNSXNRDX OTCMKTSNRDMF FRA0UL0 said on Tuesday it proposes a non-brokered private placement of up to C$2.4 million through units priced at C$0.30. Full subscription would add shares equal to about 18.3 per cent of the current outstanding count.
Shares rose to C$0.35 on the Canadian Securities Exchange at the Nov. 2 close, recorded at 4 p.m. EST by CNSXNRDX. The unit price represents a discount of about 14.3 per cent to that Nov. 2 close at 4 p.m. EST on CNSXNRDX, before the financing announcement.
The Nov. 3 announcement calls for up to 8 million units, each comprising a common share and half a share purchase warrant. Each whole warrant would buy another share at C$0.45 for 24 months from issuance.
Net proceeds would support general working capital and continued exploration of NordX's properties. The release does not assign a budget to individual projects or specify how many months of exploration the proposed financing would fund.
NordX is an exploration company focused on uranium, lithium and rare earth projects in Sweden and Finland. Its proposed raise follows fieldwork aimed at identifying targets for further testing across its Swedish uranium properties.
The CSE listing page, checked Nov. 3, reports about 43.73 million shares outstanding. Issuing the full placement would lift the basic count to about 51.73 million shares, before any warrant exercises or other share issuance.
Existing shareholders would retain about 84.5 per cent of that enlarged basic share base if they did not subscribe. This calculation excludes securities already reserved for issuance, so it describes the placement's effect on the outstanding shares rather than a fully diluted count.
Full subscription would also create 4 million warrants under the Nov. 3 terms. Exercising all of those warrants would bring in another C$1.8 million, but that money would depend on holders choosing to exercise.
"The Company intends to use the net proceeds raised from the Offering for general working capital purposes and for continued exploration of the Company's properties," NordX said in the release.
In its Oct. 15 exploration update, NordX said radon surveys at Norr Döttern and Flistjärn had confirmed historical targets and outlined new anomalies. That work provides exploration context, although the financing announcement does not earmark proceeds for either property.
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Securities issued under the Nov. 3 proposal would carry a statutory hold of four months and one day from issuance. Completion remains subject to customary conditions, including applicable Canadian Securities Exchange requirements.
The next financing step is closing, for which NordX provided no date in its Nov. 3 announcement.
