Temex eyes $3 million

Temex Resources (TME-V) has agreed to sell $1 million worth of units at 65 apiece, with each unit comprising one share and half a purchase warrant.

One warrant is exercisable into one share for 75 for 2 years. The company will also sell $2 million worth of flow-through shares at the same price.

Research Capital, as agent, has the option to increase the offering by up to $3 million in flow-through shares. The agent will also receive a 7% cash commission and like-priced warrants good for 10% of the total number of securities sold under the offering.

All of the securities are subject to a minimum hold of four months.

Temex plans to use the proceeds from the sale of the flow-through shares to fund exploration on its Juby gold project and Wilson Lake and Hood River diamond projects.

In May, Temex reported that a 10-hole, 1,963-metrer drill program on Juby extended at depth the Juby Main zone’s higher-grade gold mineralization, which was cut in two previous drill campaigns.

Hole 11 cut the Main zone 100 metres below previous drilling, and returned 14.7 metres grading 4.2 grams gold, including 4.9 metres of 6.6 grams gold. Other highlights include 1.5 metres running 5.9 grams gold and 4.2 metres of 5.1 grams gold.

Hole 12 cut the zone 50 metres east of previous drilling and returned 5 grams gold over 6.1. Hole 13 was collared 50 metres to the west and yielded 4.7 grams over 5.6 metres.

Temex says the holes confirm and expand the higher-grade core of gold mineralization on the eastern margin of the Juby Main zone, where it remains open. The holes also suggest that that the plunge of the mineralization may be steepening.

The Juby property hosts an inferred resource of 34 million tonnes running 1 gram gold, based on drilling on 200-metre centres over a strike length of 2.5 km. The deposit remains open along strike and at depth.

Temex originally acquired the Juby property, 22 km west of Gowganda, Ont., from Inmet Mining (IMN-T) for $250,000 in cash plus 100,000 common shares.

In June, Temex bought back 0.85% of a 2.85% net smelter return royalty payable to the property’s original vendors by paying $10,000 in cash and issuing 40,000 shares. The company has the option on another 0.65% of the royalty.

The Juby property is on what’s believed to be the western extension of the Cadillac-Larder Lake regional break.