Greg Ferron's PTX Metals Inc. (PTX) is seeking $2.25-million through the sale of six million regular shares at 12.5 cents and 10.7 million flow-through shares at 14 cents. The offer is being made at a discount -- not unusual -- and as usual, buyers in the market chose to take a discount of their own, sending PTX down one cent to 13 cents on 212,000 shares Tuesday. (It fell another 1.5 cents to 11.5 cents on 211,000 shares today.)
The hard dollars are for general expenses, while the flow-through portion appears destined for the W2 polymetallic project in Northern Ontario. PTX cheers an exploration target -- a regulatory tolerable term for a not-yet-inferred deposit -- that hosts between 59 million and 135 million tonnes of rock grading between 0.78 per cent and 1.03 per cent copper equivalent at W2.
Mr. Ferron, president and CEO, is quiet about the company's plans at W2, but a hot-off-the-press technical report recommends that the company spend $223,000 on a phase I program that includes resource estimation, permitting, rock sampling and metallurgy. Should that effort be successful, a phase II program would follow. The proposal calls for 3,000 metres of drilling to confirm and expand the mineralization -- assuming that there is mineralization confirmed in the first phase that can be expanded in a second. And so, the company says, there is no budget offered for the phase II program, "since the second phase depends strongly upon the positive outcome of the phase I exploration results."
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