Seeking Alpha

Proactive Investor's  Instablog

Proactive Investor
Send Message
Proactiveinvestors is a leading multimedia news organization, investor portal and events management business with offices in New York, Sydney, Toronto and London. Proactiveinvestors operates five financial websites in four languages providing breaking news, comment and analysis on hundreds of... More
My company:
Proactiveinvestors
My blog:
Proactiveinvestors
  • Northern Vertex Mining To Complete Equity Offering Of Up To $10mln 0 comments
    Jul 11, 2013 2:23 PM

    Northern Vertex Mining Corp. (CVE:NEE)(OTCQX:NHVCF) has filed a preliminary short form prospectus with provincial regulatory authorities in Canada relating to its equity offering to raise proceeds of up to $10 million.

    The price of the common shares to be sold has yet to be determined, the company said in a statement late Wednesday. The offering will be completed by a syndicate of agents led by Paradigm Capital, which have the option to purchase an additional 15 per cent of the number of common shares sold under the offering, for a period of up to 30 days following the closing date.

    The financing is expected to close before market open on August 13, subject to the approval of the TSX Venture Exchange and provincial securities regulators.

    Northern said the new funds would be used to advance the exploration and development of its Moss gold-silver project in Arizona, including the pilot plant operations, which is designed to confirm test mining, heap leach processing and gold and silver recoveries.

    In conjunction with the equity offering, the junior explorer also plans to complete a private placement financing of up to $5 million.

    Northern Vertex recently provided an update on its construction plans for its Moss gold-silver mine project, saying the first phase of the three-stage development process is progressing on time and on budget.

    Last month, the company filed an amended preliminary economics report, with phase II of the project showing an IRR of almost 118 per cent pre-tax and before royalties, and a net present value of US$110 million, at a 5 per cent discount rate. The phase II, or full operation, economics were calculated using gold prices of US$1,500 an ounce and $30 per ounce of silver. The payback period was seen at 15 months, with capex costs estimated at US$26.6 million. Cash costs were projected at just US$490 an ounce.

    The pilot scale mining and processing will be carried out on about 90,000 tonnes of mineralized rock, at a rate of 1,000 tonnes per day.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Back To Proactive Investor's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.