PNX Metals buoyed by continuing support of major shareholder Delphi

PNX Metals Ltd (ASX:PNX) (FRA:4P1) ends 2020 well-positioned to make strong inroads with its Northern Territory strategy focused on gold and gold-zinc-silver and buoyed by the continuing support of major shareholder Delphi Unternehmensberatung AG. The German-based prolific Australian junior resources investor has increased its holding in PNX to 46.97% with a series of investments during 2020. Rights issue participation The most recent involvement has seen Delphi, which is majority-owned by Heidelberg investor Wilhelm KT Zours, purchase 324,072,407 shares at 0.6 cents each in the company’s rights issue that raised more than $3.167 million. Delphi’s purchase on December 24 represented its full entitlement and was valued at more than $1.944 million. It now holds in excess of 1.62 billion PNX shares for a 46.97% stake, up from 44.38%. There were 527.9 million new shares at 0.06 cents each accepted in the non-renounceable pro-rata rights issue that combined with a placement, takes PNX’s recent capital raising efforts to more than $5.437 million. Placement shares Delphi also participated in the placement to eligible professional and sophisticated investors of 378.333 million fully-paid ordinary shares to raise about $2.27 million before costs. It acquired 233.33 million new placement shares at 0.6 cents each for a total of $1.4 million. On completing the SPP, PNX managing director James Fox said: “On behalf of the board of PNX, I would like to thank all our shareholders who participated in the rights issue. “This funding together with the placement will enable the company to progress its 100%-owned Fountain Head gold and Hayes Creek zinc-gold-silver projects and will see the company through a significant period of project development and gold exploration activity over the next 12 months, including finalising the acquisition of the Glencoe gold deposit.” To “rapidly advance” exploration Fox added: “Exploration will be rapidly advanced, with near-mine drilling to test newly identified target areas at Fountain Head commencing as early as February, subject to government approvals. “We look forward to delivering on the potential for the projects to create significant value for the company’s shareholders.” The total shortfall under the rights issue is 202.28 million new shares and PNX directors will consider the placement of the shortfall within three months of the December 17, 2020, rights issue closing date. Use of funds Capital raising proceeds will be used to accelerate activities at the 100%-owned Fountain Head and Hayes Creek projects, including feasibility work and government and environmental approvals submission. Near-mine and regional gold exploration will also re-commence to test new exploration targets with the potential to host additional gold resources. These were identified during a recent geological review of the company’s exploration portfolio about 170 kilometres south of Darwin in the Pine Creek region of the Northern Territory.