Ximen Mining strikes C$8M equity financing facility with Alumina Partners to advance BC assets

Ximen Mining Corp (CVE:XIM) (OTCQB:XXMMF) has struck a deal with New York-based private-equity firm Alumina Partners for an equity financing facility to advance the explorer’s activity in British Columbia.

Alumina will provide up to C$8 million over two years to finance exploration, including at the flagship Brett epithermal gold project and on-going acquisition of gold assets in the province.

READ: Ximen Mining’s option partner GGX Gold sees gold in core from latest drilling at Gold Drop project in BC

“As the gradual sector rotation back toward precious metals continues to gain traction, we anticipate the strong management team at Ximen being able to translate their substantial asset base into the real revenue streams of a production-stage company,” said Adi Nahmani, managing member of Alumina.

Meanwhile, Ximen CEO Christopher Anderson added: “This agreement provides Ximen with additional capital to expand our exploration program on our Brett epithermal gold property near Vernon BC and allows us to accelerate our work programs planned for the Kenville Gold Mine near Nelson, BC.”

Under the deal, Ximen has the right to draw down on the facility, as and when it wants, via equity private placement tranches of up to C$500,000 each.

Each tranche will be a placing of units, with each unit consisting of one Ximen share and one common share purchase warrant.

The units will be priced at a discount of between 15% and 25% from the most recent closing price on the TSX venture exchange at the time of the applicable draw-down.

A 25% premium

Warrants will be issued at a 25% premium over the market price of shares and have a term of three years. Each tranche of units issued will be subject to the acceptance of the venture exchange and subject to the customary four-month hold period.

Ximen Mining owns 100% interest in all three of its precious metal projects in southern British Columbia. Its two gold projects are The Gold Drop project and The Brett Epithermal Gold project. Ximen also owns the Treasure Mountain silver project, adjacent to the past-producing Huldra Silver mine.

Gold Drop and Treasure Mountain are under option agreements, with option partners making annual staged cash and stocks payments as well as funding the development of these projects. The company has recently acquired the Kenville Gold mine near Nelson, British Columbia and The Amelia gold mine.

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Story by ProactiveInvestors