BBX Minerals receives backing from investors for oversubscribed placement to raise $2.1m

BBX Minerals ASX platinum iridium mineralisation placement Três Estados Project
Placement proceeds will go toward completing BBX’s ongoing assaying program at the Três Estados project in Brazil to deliver a JORC resource.

BBX Minerals (ASX: BBX) has received backing from professional and sophisticated investors for a placement to raise $2,132,000 through the issue of 26 million fully paid ordinary shares and 26 million attaching options.

The mineral exploration and technology company’s fully paid ordinary shares will be valued at $0.082 per share, with the attaching options set at an exercise price of $0.12, expiring 31 December 2025.

Proceeds from the placement will go towards completing BBX’s ongoing assaying program required for the delivery of an Australasian Joint Ore Reserves Committee (JORC) resource and also assist in furthering the company’s extraction test work.

Melbourne-based corporate advisory firm Peak Asset Management led the raise.

BBX Minerals chief executive officer Andre Douchane said the company’s efforts are paying off and is pleased with the backing from investors.

“We are very pleased with the interest received following the recent PGM [platinum group metals] assay results from the Três Estados project,” he said.

“The company is simultaneously working on several key activities and is now in a strong financial position to deliver on its immediate objectives with an ultimate goal of becoming a precious metals producer”.

The issue price of $0.082 per placement share is a 13.7% discount to the price of the company’s shares before entering a trading halt on 1 July this year.

Encouraging drilling results

BBX Minerals completed assaying of two drill holes from its Três Estados Project, located in Amazonas State, Brazil, thanks to the installation and commissioning of a new Atomic Absorption Spectrometer (AA).

The two holes assayed were reverse circulation (RC) drill hole TERC-006 from its 2017 drilling program and diamond drill hole TED-009 from the company’s 2020-21 drilling program.

Assays were conducted and uncovered widespread intervals of platinum and iridium mineralisation being encountered in both holes, much to the delight of BBX.

From TERC-006, significant results included 20m at 1.45g/t 5E PGM including 2m at 3.84g/t 5E PGM from 10m, and 2m at 1.96g/t 5E PGM from 18m. 5E PGM refers to platinum, palladium, gold, iridium and rhodium.

As for TED-009, significant results included: 3m at 3.48g/t 5E PGM from surface; 2m at 1.81g/t 5E PGM from 16m; 2m at 1.56g/t 5E PGM from 20m; 2m at 1.92g/t 5E PGM from 24m; 2m at 3g/t 5E PGM from 28m; 2m at 1.43g/t 5E PGM from 34m; and 2m at 3.45g/t 5E PGM from 48m.

Mr Douchane said the continuity from hole to hole is extremely encouraging for BBX Minerals.

“While we do see some good grades along with some modest numbers, the fact that we see metal content from hole to hole in these widely spaced holes is significant,” he said.

“Additionally, the near surface occurrence of the mineralised zone indicates economical surface mining techniques can be used for what we are currently finding.”

“Now that both AA machines are working, we hope to quickly finish up through TED 019, begin work on a JORC compliant resource, and continue work on the treatment process,” he added.

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