PolarX Ltd Raising Funds For Exploration And Metallurgical Testing At Alaska Range

PolarX Limited (ASX:PXX) is a listed mineral explorer and developer company. The company has the advantage of the high-grade nature of its deposits with 3.1% Copper is Caribou Dome and 1.2% Copper is Zackly, and 2.0g/t Gold along with 14g/t Silver. PXX is starting with a new Alaska Range Project within a 35 km mineralized belt with high potential of existing and unexplored resources of high-grade minerals.

After the successful exploration of high-grade copper and gold at Zackly and Mars, the company is further planning for exploration and metallurgical testing at Alaska Range from 2019 for which it will be issuing 21 million shares at an issue price of 6c per share, currently trading at 6.3c per share to raise approximately $1.26 m. The company has presently 298 m shares outstanding with the market cap of around $17.9 m. Aetas Global Markets Limited will be acting as a lead manager to the Placement. The Placement is being undertaken within the company’s existing capacity under ASX Listing Rule 7.1 and completion is expected on or around 14 December 2018.

PXX will be using the proceeds for:

1. Metallurgical test work programs to evaluate processing options for the Zackly Cu?Au skarn mineralization which will include an assessment to recover a large proportion of the free-milling native gold through a gravity circuit followed by subsequent processing to recover residual native gold and copper minerals,
2. A 15?20 km line induced polarization ground over the Zackly SE porphyry target zone,
3. To assign secure vital contractors for the 2019 exploration program to test:

• down?dip and strike extensions to the thick, high?grade, near?surface, sub-horizontal mineralization (including 55m @ 2.8g/t Au and 0.6% Cu in hole ZX?18020) which was discovered 850m east of the current inferred resource
• the highly promising Mars porphyry Cu-Au target where high grades of Cu and Au have been identified (as per the 19 November 2018 announcement) in rock chip samples and geochemical soil samples above an IP anomaly which is directly related to a magnetic high
• the large?scale Zackly SE porphyry target which is 3 km to ESE of the high?grade Zackly skarn,

4. Improving logistics by reducing helicopter requirement further reducing future exploration cost, and
5. General working capital.

As per the management, the support by the existing shareholders reflects great confidence in the substantial upside at the Alaska range. Further, PXX has a significant gold-copper resource with the latest drilling results highlighting the potential for a high-grade surface mining operation. It also posses two outstanding porphyry targets to be pursued in the coming field session.

The securities of PolarX were put to a trading halt on 4 December 2018 for the announcement to be made and after the release of the capital raising announcement today, the halt was lifted immediately. Although the price of the scrip is trading on the downside from the past one year falling by almost 59% (14.5c on 30 November 2017), but after the announcement, the price soared by 5% and is currently trading at 6.3c as compared to the previous close of 6c on 30 November 2018.

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