NGEx Minerals Expands Private Placement to C$175 Million on Strong Investor Appetite
VANCOUVER, BC, Oct. 16, 2024 /CNW/ – NGEx Minerals Ltd. (NGEX, NGXXF), a leading explorer of copper and gold deposits, has announced a significant increase in its previously announced non-brokered private placement. The company is now aiming to raise a total of C$175 million through the sale of 15,909,091 common shares at a price of C$11.00 per share. This decision follows strong demand from investors, reflecting confidence in NGEx’s exploration strategy and its promising projects.
The proceeds from the private placement will primarily be directed towards bolstering exploration programs at the Lunahuasi project in San Juan Province, Argentina, a key asset for NGEx. The funds will also be used for continued exploration and maintenance of the company’s Los Helados project, located in Region III, Chile. Additionally, the company will allocate a portion of the proceeds towards general corporate and working capital needs.
The completion of the private placement is subject to the approval of the Toronto Stock Exchange (TSX) and other customary regulatory approvals. This includes finalizing subscription agreements between NGEx and the participating investors. The issuance of the common shares will be conducted on a private placement basis, adhering to exemptions from prospectus requirements under applicable securities laws. The shares will be subject to a four-month and one-day statutory hold period from the date of issuance.
NGEx may also pay a finder’s fee of 5% to certain parties in connection with a portion of the private placement.
The company is aiming to finalize the private placement as soon as practicable, contingent upon obtaining all necessary regulatory approvals. It’s worth noting that certain insiders of NGEx, including trusts established by the late Adolf H. Lundin (the “Lundin Family Trusts”), have indicated their intention to participate in the private placement. These trusts currently control a private entity that holds the largest shareholding in NGEx.
Any such participation by the Lundin Family Trusts would be considered a “related party transaction” under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). However, this transaction will be exempt from formal valuation and minority shareholder approval requirements of MI 61-101 as the fair market value of any common shares issued to or the consideration paid by such persons will not exceed 25% of the company’s market capitalization.
About NGEx Minerals
NGEx Minerals is a Canadian-based exploration company with a strong focus on copper and gold deposits. The company’s core assets include the Lunahuasi copper-gold-silver project in San Juan Province, Argentina, and the nearby Los Helados copper-gold project in Chile’s Region III. Both projects are strategically located within the Vicuña District, a region known for its significant mineral resources. This includes the Caserones mine, as well as the Josemaria and Filo del Sol deposits.
NGEx holds a 100% ownership stake in the Lunahuasi project. The company also serves as the majority partner and operator for the Los Helados project, under a Joint Exploration Agreement with Nippon Caserones Resources LLC. Nippon Caserones Resources LLC is the indirect 30% owner of the operating Caserones open pit copper mine, located approximately 17 kilometers north of Los Helados. Lundin Mining Corporation holds the remaining 70% stake in Caserones.
NGEx’s common shares are listed on the TSX under the symbol “NGEX” and also trade on the OTCQX under the symbol “NGXXF”. The company is part of the Lundin Group of Companies, a respected and experienced group of mining and exploration companies.
For further information about NGEx Minerals, please visit their website or consult SEDAR+ at www.sedarplus.ca.