Toronto-based XMet Inc. (
TSX:V.XME,
Stock Forum) has closed the first $500,000 tranche of its recently announced private placement deal at a premium to the current market stock price, moving common shares at $0.125 per share.
The proceeds of the offering will be used by Xmet for additional development work on its Blackflake project near the Zenyatta Ventures (
TSX:V.ZEN,
Stock Forum) property at Hearst, Ontario, according to the company.
"We have been able to secure financing at a premium to market which will enable us to follow up on the multiple anomalies that we discovered during our previous airborne geophysical work, " said Alexander Stewart, Chairman and CEO of Xmet.
“Our plan for the first quarter of 2014 is to continue our aggressive exploration and development plans for the Blackflake project. The steps are to complete detailed ground work including ground magnetic and Induced Polarization surveys in order to improve the resolution of defined airborne targets in advance of drilling. All of this ultimately leads to Xmet being able to pull drill core out of the ground in early 2014.”
He continued by saying "in addition to our planned work, we look forward to continuing to develop an excellent working relationship with the Constance Lake First Nation. Management is scheduled to visit the Chief and Council in early January, 2014."
XMet will keep the offering open until year end.
Shares in XMet rose 20% on the news to $0.12, up from $0.10. The company has a $7.2 million market cap with 65.1 million shares outstanding.