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Callinex Mines will kick off more drilling at its sites near Flin Flon later this year and the company has secured millions in funding through a recent private placement to cover the cost.
The Vancouver-based mining company is once again expanding drill work at its Rainbow deposit, part of the company’s Pine Bay project located about 16 kilometres due east of Flin Flon. The company plans to further build on mineralization patterns that previous drill campaigns at the Rainbow site have found, showing spots of high-grade copper, zinc and other minerals.
Two drill rigs will be used as part of the latest campaign, according to a company news release issued late last month. One will be focused on the Rainbow deposit itself, infill drilling at three different zones of the deposit to provide more information for the company to build a 43-101 resource estimate for Rainbow. The other will be focused on a series of what Callinex describes as “high-priority exploration targets”.
“Drilling will test a number of electromagnetic (EM) geophysical targets identified at the base of the interpreted growth fault that hosts Rainbow and five other deposits, three of which have seen some level of historic production,” reads the company statement on the drilling, which was released April 27.
Another 43-101 resource estimate is in the works for the Pine Bay deposit as a whole by the company, though no new drilling will be done for that estimate for the moment.
Meanwhile, the company also announced late last month that it had closed a non-brokered private placement, raising over $6 million in net funds that will go towards its ongoing Pine Bay and Rainbow drill campaigns.
The company offered up over 450,000 hard dollar units at $3.11 each and 966,000 flow-through units at $5 each, earning millions from the sale. The hard dollar units included one common share in the company and half of one transferable common share purchase warrant - the flow-through units would include one flow-through common share and half of a transferable warrant issued on a non-flow-through basis. Investors who bought those warrants will be able to purchase an extra common share in the company at $4.75 each for the next two years.
The company will pay about $167,000 in finders’ fees for the placement, giving them a total of just over $6 million in funding, subject to other restrictions on resale or other fees.
“The company is now fully funded and focused on the continued expansion and publication of a 43-101 resource estimate on the high-grade copper, gold, silver and zinc rich Rainbow deposit at the company’s Pine Bay project in Manitoba,” said company CEO and president Max Porterfield in a Callinex-issued news release.
“We are grateful for the support from the new and existing shareholders in this financing which allows us to continue to execute on our long-term objectives.”
The company has also issued 250,000 stock options to its directors, employees and other officials, exercisable for up to five years at $3.11 per share.
