Yellowknife, Northwest Territories - TerraX Minerals Inc. (TSX-V: TXR; Frankfurt: TXO) has now closed its recently announced non-brokered private placement of 7,927,786 units at $0.35 with the issuance of a further 1,043,286 units at $0.35 per unit for gross proceeds of $365,150. With the completion of this final closing, the aggregate gross proceeds raised in this private placement now total $2,774,725.
Each unit consists of one common share and one-half of one share purchase warrant, with each full warrant entitling the holder to purchase an additional common share at an exercise price of $0.50 per share until October 16, 2017. The shares, warrants and any shares acquired on the exercise of warrants will be subject to a hold period expiring on February 17, 2015. Cash finder's fees will be payable with respect to a portion of this placement along with the issuance, to certain finders, of 21,630 finders warrants exercisable at $0.50 until October 16, 2017.
Virginia Mines Inc. (TSX: VGQ), a current shareholder of TerraX, exercised its right to maintain its equity interest and participated in this third closing by purchasing 714,286 units for net proceeds to the Company of $250,000.
The proceeds of this private placement will be used to finance drilling this winter on TerraX's Yellowknife City Gold Project, immediately north of Yellowknife in the Northwest Territories. Drilling will follow up on the successful drill programs in 2014 on the Barney Zone (22.42 m @ 6.35 g/t Au) and the Crestaurum deposit (2.85 m @ 33.60 g/t Au). As well drilling will test several new high grade targets that consist of oblique or high angle veins near the main Crestaurum deposit and the nearby Barney structure. Surface sampling in 2014 returned grab samples as high as 549, 712 and 878 g/t Au from these new veins. Collectively, the shears and veins could be indicative of gold bearing vein sets common to large mineralized systems.