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Tirex Resources Closes On $3.12 Mln Financing For Albania Project

Tirex Resources (CVE:TXX)(OTCQX:TIRXF) says it has closed the private placement financing it announced last month, raising almost $3.12 million of cash - quite a feat in this challenging environment for Candian juniors.

The company said it issued 6.24 million shares at around 50 cents each. No warrants were issued, it added.

"To complete a straight share financing for more than $3 million in this difficult overall market environment is a testament to the quality work our technical team in Albania is doing, and speaks highly to the merits of the project," said CEO Bryan Slusarchuk in a statement late Tuesday.

"Thank you to all shareholders for your continued strong support as we advance our projects in the Mirdita VMS District."

The new funds will be used as Tirex advances its business plan at the Mirdita Volcanogenic Massive Sulphide (VMS) project in Albania.

In January, Tirex received all six mining licenses from Albania's National Licensing Center for the project that paved the way for near-term production for the company.

Tirex 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.

In addition to the $1.2 million raised late last year, and the over $3 million it just closed, 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.

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