PolarX Ltd. secured a A$4.3 million investment from Lundin Mining Corp. to advance exploration in the Stellar claims within its Alaska Range copper-gold project in Alaska.
Lundin agreed to acquire a 14.3% stake in PolarX and become its largest shareholder by subscribing for 53,440,000 shares at 8 Australian cents each, according to a June 4 release. The proceeds will be used to fund an exploration program on Stellar, with completion expected by the end of the year.
The deal also provides Lundin with an option to earn a 51% interest in select porphyry copper-gold targets in the Stellar claims by paying US$20 million and spending US$24 million on exploration within three years. Lundin will be the manager of the joint venture.
In connection with the share placement, PolarX said it intends to raise an additional A$4.3 million through a 1-for-7 nonrenounceable entitlement offer at 8 Australian cents per share. Proceeds will be used for exploration on the Zackly copper-gold claims and the Caribou Dome copper-silver project, as well as for general working capital.