The company will issue 6.04 million common shares at a price of 50 cents each, with no warrants attached.
The new funds will be used as Tirex advances its business plan at the Mirdita Volcanogenic Massive Sulphide (VMS) project in Albania.
Last month, Tirex received all six mining licenses from Albania's National Licensing Center that paved the way for near-term production for the company.
The six specific areas, for which conversion from exploration permits to 25-year mining licenses has now been completed, are located in the Mirdita VMS district in Albania. VMS deposits are a type of metal sulfide ore deposit, and are created by volcanic-associated hydrothermal events in submarine environments.
The company now has all the required documents and permits in place to allow for mining operations in the six areas. The company already has a partnership agreement relating to copper, gold and silver production, meaning it can fast track to production without corresponding share dilution.
Initially, the partnership is targeting 500 tonnes per day of production, with a target to ramp up to 2,000 tonnes per day of production after two years.
Tirex also said Thursday that it will not be proceeding with the balance of the $7.7 million financing announced early last November. It closed the first tranche of that financing in late November, raising a total of $1.2 million.
In addition to the $1.2 million raised last year, and the $3.02 million announced late Wednesday, Tirex has $1.91 million undrawn under its facility with the European Bank for Reconstruction and Development.
As well as targeting production at the six areas of Mirdita, Tirex is also planning to explore other regions in the district. Based on historical data and the exploration work done thus far, the company said it believes that the district is "highly prospective" for new discoveries.
The private placement financing announced yesterday still needs regulatory approvals to close.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.