Pacific North West Capital Corp. (TSX: T.PFN, Stock Forum) said Tuesday it is launching a non-brokered flow-through and non flow-through private placement of up to a combined 16.3 million units, for gross proceeds of $960,000.
Each non flow-through unit is priced at 5 cents per unit. The flow-through units are priced at 6 cents, the company said in a press release.
Proceeds from the placement will be used to fund development and exploration at the River Valley PGM project and two large adjacent properties located near Sudbury, Ontario.
Details of the financing were announced after the close of trading Tuesday, when Pacific North West Capital shares rose 10% to 5.5 cents, leaving the company with a market cap of $5.7 million, based on 104 million shares outstanding. The 52-week range is 17 cents and 4.5 cents.
PFN holds a 100% interest in the River Valley project, which is host to a N1 43-101-compliant measured and inferred resource of 3 million ounces of platinum group metals, plus gold.
Mineral resource estimates for the project encompass 8 kilometres of the 10 kilometre strike length of PGM mineralized zones, but to an average depth of 220 metres below surface.
The project is under evaluation for its development potential as a long-life, open pit mining operation that would source material from the Dana North and Dana South mineralized zones. The company has said it hoped the economics would be boosted by River Valley's proximity to processing facilities and infrastructure in nearby Sudbury.
Speaking to Stockhouse last month, PFN Chairman Harry Barr said it hoped to bring in an Asian partner to fund exploration at River Valley. “If we can’t find a partner, we will do what we can,’’ he said.