Copper North Mining (CVE:COL) said after market close on Friday that it expects to complete the oversubscribed flow through portion of its non-brokered private placement financing announced last month today.
The flow through portion is made up of 9.64 million flow through shares, up from the originally intended 5.0 million, at a price of 6 cents apiece, for total proceeds of $578,380.
The company said the new funds will be used for exploration at its Carmacks property in the Yukon and its Thor project in B.C.
The unit portion of the financing, or the sale of up to 15 million units, is expected to be completed in early January next year. Each unit will be made up of one common share and one half of a share purchase warrant. Every warrant will be good for one additional share at a price of 9 cents for a period of two years. These proceeds will be used to complete the technical review ongoing at Carmacks, Copper North said.
The company recently appointed Joseph Ringwald as the new project manager for the Carmacks project. He is in charge of overseeing all the work for the completion of the new feasibility study at the project, which was announced in October as part of the company's plan to reduce costs and improve operations.
The study will be conducted by a joint engineering team which includes JDS Energy and Mining and Chinese firm Beijing General Research Institute of Mining and Metallurgy (BGRIMM). Discussions with both JDS and BGRIMM so far have also suggested there is opportunity for alternative development plans that would significantly slash costs, said Copper North, including the recovery of copper using vat leaching and the addition of gold and silver recoveries.
Chief executive officer Harlan Meade, which came on board earlier this year and helped restructure the company, bought 340,000 flow through shares in the latest placement.