Ximen Mining makes first drawdown under Alumina Partners deal to the tune of C$250,000

Ximen Mining Corp (CVE:XIM) (OTCQB:XXMMF) said it had made the first drawdown on its previously announced equity financing with New York-based private-equity firm Alumina Partners.

In the first tranche, which closed on July 11, Ximen drew down C$250,000 and Alumina received 480,770 units of Ximen consisting of  one share of $0.52 per share and an 18 month warrant, exercisable at C$0.8125 per share.

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

As reported last month, Alumina will provide up to C$8 million over two years to finance exploration, including at its flagship Brett epithermal gold project and on-going acquisition of gold assets in British Columbia.

Under the agreement, 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

The warrants will be issued at a 25% premium over the market price of the shares and will have a term of 18 months.

Ximen Mining owns 100% interest in all three of its precious metal projects in 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