Canada Fluorspar (CVE:CFI) says it has closed a non-brokered private placement financing of nearly $290,000 to extend the drilling program at its Grebes Nest property in Newfoundland based on recent results.
The company issued 1.5 million flow through common shares of the company at 19 cents apiece.
"Based on positive results of the current drilling program at Grebes Nest, we have decided to extend the drilling and keep the drill rig on site," said president and CEO Lindsay Gorrill, in a statement Friday. "We are also targeting a National Instrument 43-101 compliant technical report on this site."
The new funds will be used for the continued exploration on the Director and Grebes Nest veins at the company's St. Lawrence project.
The Grebes Nest vein lies about 4 km from the former Tarefare mine and less than 6 km from the former Blue Beach North mine in Newfoundland.
The company has 41 known mineralized veins on its fluorspar assets in St. Lawrence, two of which - Blue Beach and Tarefare - have been drilled and vended into a partnership with French chemical giant Arkema, while drill rigs started working at its own Director Vein in January. After the rigs finished turning at Director, Canada Fluorspar moved on to Grebes Nest, with recent results extending the strike length by 300 metres. One drill hole last month at Grebes Nest intersected 89.58% fluorspar over 6.95 metres.
With the Blue Beach and Tarefare veins now being reviewed under the partnership, the Canadian company is looking to unlock the potential value of the Director and Grebes Nest Veins this year through drilling. Canada Fluorspar has said that ground geophysical survey results suggest that the Grebes Nest mineralized structure has the potential to extend for more than 4,000 metres along strike.
Fluorspar is used to reduce the amount of energy needed to produce aluminum, and is also used for photovoltaic solar panels, but the biggest application is fluoro chemicals - which are used in products ranging from air conditioners and refrigerants to lithium batteries and the material Gore-Tex. Consumption of the mineral is expected to reach 7 million tonnes by 2015, but there is currently no domestic supply in Canada or the U.S. as these two countries rely on Mexico, the second biggest producer after China - which is expected to become a net importer soon.
Historic mining operations on the St. Lawrence property produced more than 4.2 million tonnes of fluorspar during a 44 year continuous production from 1942 to 1977. Production resumed in 1986 and continued until 1991, when St. Lawrence Fluorspar reopened the nearby Blue Beach North Mine and processed 440,000 tonnes of ore from small open pits, one of which was located in a surface pillar at the Director Mine near the main shaft.
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