(MENAFN - ProactiveInvestors - Australia) Mindax (ASX: MDX) has received the second tranche of placement funds totalling A700,000, bringing the total funds received to 1.2 million.
The second tranche is part of the recent A2.5 million placement undertaken at a 21% premium.
These new funds will build on the A2.2 million in cash Mindax had at the end of the September 2012 quarter and enable exploration at the Meekatharra North Gold Project to be stepped up and momentum increased.
The total placement of 29.5 million shares at 0.085 is being made to sophisticated investors Zhensheng Zhuang and Chenfei Zhuang.
Mindax previously entered into a farm-in agreement with the investors which provides for 2.5 million to be spent on the Meekatharra North Gold Project over three years in exchange for a 51% interest in the project.
The company anticipates the balance of cleared funds will be received by the end of November 2012.
Meekatharra North farm-in
Under the farm-in deal, Zhensheng Zhuang and Chenfei Zhuang are required to spend an initial 500,000 by August 2013 before the first opportunity to withdraw. The agreement is subject to certain government approvals.
Mindax will continue to manage the tenement and provide technical expertise during the earn-in period.
The Meekatharra North Project is situated 40 kilometres north of Meekatharra and 20 kilometres along structure from the Paddy's Flat gold field, where 2.5 million ounces of gold has been produced.
The project also lies immediately along strike from Doray Minerals' (ASX: DRM) high grade Andy Well gold project, which hosts a resource of 831,000 tonnes at 12.7 grams per tonne (g/t) for 338,000 contained gold ounces and is scheduled for first production in 2013.
Work by Doray suggests that the mineralised structures encountered to date continue southwards into Mindax's tenements.
Mindax expects work on the ground, including surveys to determine drill targets and a subsequent drill program to assess these targets, to begin during the first half of 2013.