International Montoro Resources Inc (CVE:IMT) (OTCPINK:IMTFF) announced a new financing facility of up to C$2 million to help advance the Pecors project near Elliot Lake, Ontario, it said Thursday.
The firm told shareholders it has started the exploration permitting process at the polymetallic project to allow the Vancouver-based company to delineate the nickel, copper and platinum group metals (PGM) mineralization on the 1,840-hectare property.
Previous exploration by International Montoro outlined a 5.7 kilometre by 4.2 kilometre anomaly at Pecors.
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In a statement, the explorer said that observations near the anomaly suggest a massive sulphide deposit may be hosted in the base of the gabbro intrusion, which could lead to the discovery of a new deposit type in the Elliot Lake mining camp near the historic mining town of Sudbury.
The financing facility is with Alumina Partners (Ontario) Ltd, an affiliate of New York-based private equity firm Alumina Partners LLC. Under the agreement, International Montoro can draw down equity private placement tranches of up to C$250,000 each. Each tranche consists of units comprised of one share and one warrant, sold at a discount of between 15% and 25% of International Montoro’s closing price on the day prior to the drawdown notice.
The exercise price of the warrants will be at a 25% premium over market at the time they are issued and have a five-year term.
"The facility provides us with the necessary capital to advance our projects should and when we need it, the company is in the process of permitting the Serpent River-Pecors Project in Ontario and continues to develop our prospective gold projects in Ontario and Newfoundland,” International Montoro CEO Karim Rayani told investors.
“The capital will be especially useful on the Pecors project as we see nickel continue to trade higher and as the EV conversation gets louder with more emphasis being placed on nickel intensive battery cell chemistries. The Pecors project is a great focus point for the company as nickel once again booms particularly with Europe predicted to rival China in terms of EV market share by the end of 2020."
Additional proceeds from the facility will go towards general corporate purposes, the company said.
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