A recent private placement by Aurizon Mines (TSE) is expected to provide funds for Aurex Resources (TSE) to expand production at the Cobrex mine and for general working capital.
Aurizon is a major shareholder of Aurex, with a 10.57% equity interest. In addition, Aurex and Aurizon share common management and three common directors.
Aurex arranged a private placement with Aurizon for the issue of 666,666 common shares at a price of 90 cents per share, for total proceeds of $600,000. Attached to each share is a share purchase warrant. The proceeds will be used to buy more mining equipment for the expanded production at Cobrex. Aurex is a junior copper/gold producer with operations in Chile, including the San Esteban project and the Cobrex project. The junior also has exploration interests in Chile, Peru and Guyana.
In February, 20,401 tonnes of ore grading 1% copper and 1.99 grams gold per tonne were processed at San Esteban to produce about 364,000 lb. copper and 1,170 oz. gold.
In February, the Cobrex mine produced 18,149 tonnes of ore. Because of a temporary breakdown in the crushing circuit, mill production decreased to 12,505 tonnes grading 1.37% copper to produce about 287,300 lb. copper and 8,800 oz. silver.
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