Following the closing of the non-brokered private placement which raised gross proceeds of approximately $2.5 million from the placement of approximately 8.9 million charity flow-through shares, priced at $0.285 per share, New Gold now holds 9.9% of Ximen.
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Video Transcript:
I’m Ebony North for Investmentpitch Media
Ximen Mining has closed a strategic $2.5 million investment from New Gold Inc.
Following the closing of the non-brokered private placement which raised gross proceeds of approximately $2.5 million ($2,534,686) from the placement of approximately 8.9 million (8,893,635) charity flow-through shares, priced at $0.285 per share, New Gold (TSX:NGD) now holds 9.9% of Ximen.
In a second-step transaction, and part and parcel of the completion of the offering, New Gold acquired its position at a 30% discount to its subscription price.
Ximen owns 100% of three of its precious metal projects located in southern BC, the Amelia Gold Mine and The Brett Epithermal Gold Project, and the Treasure Mountain Silver Project adjacent to the past producing Huldra Silver Mine.
Currently, the Treasure Mountain Silver Project is under an option with the option partner making annual staged cash and stocks payments as well as funding the project.
The company has also acquired control of the Kenville Gold mine near Nelson, BC, which comes with surface and underground rights, buildings and equipment.
New Gold owns the nearby New Afton Mine, located 10 miles west of Kamloops.
The New Afton Mine produced 41,074 ounces of gold equivalent for the quarter ending December 31, 2021.
Christopher R. Anderson, Ximen's President and CEO, stated: "Building strategic relationships with active partners in our community and jurisdiction is essential to Ximen's long-term goals. Ximen is looking forward to enhancing its relationship with New Gold. Their initial decision to invest in Ximen projects and development plans is an excellent starting point.”
Ximen continues to expand its land package around its flagship property, the Kenville Gold Mine, located near Nelson, British Columbia, where the company owns the surface, and underground rights, buildings and equipment and is developing the project into a small underground mine.
The company’s Kenville Mine was British Columbia’s first hard rock gold mine, having been discovered in 1887.
In 2009 the previous operator produced a NI 43-101 report, now historic, based on detailed sampling conducted within the mine which disclosed a Measured and Indicated resource estimate of 16,289 ounces and an Inferred resource estimate of 356,949 ounces gold.
Preparations to date comprise the building of the mining camp, including connecting hydropower, completing engineering work and initiating permitting to develop a new 1200-meter decline to conduct diamond drilling to outline a 10,000-bulk sample.
Ximen’s shares are trading at $0.23.
For more information, please visit the company’s website, www.XimenMiningCorp.com, contact Christopher R. Anderson, President and CEO, at 604-488-3900.
For Investor Relations, contact Sophy Cesar, at 604-488-3900 or by email at ir@XimenMiningCorp.com.
I’m Ebony North for Investmentpitch Media
