NGEx raising $32.2M to advance projects in South America

NGEx Resources Inc., a Canadian mineral exploration company, said Thursday that it had raised a larger-than-expected $32.2 million from Swedish and international investors through a private placement of stock.

Vancouver, British Columbia-based NGEx said it plans to use the money for working capital as it develops exploration projects in Chile, Argentina and Canada. NGEx is seeking capital to advance several large copper-gold projects in South America.

The company is focused on the Josemaria, Los Helados and Filo del Sol projects located in adjacent areas of Chile and Argentina.

It has a 60% stake in the Los Helados and Filo de Sol projects, which are 40% owned by Pan Pacific Copper Co. Ltd.

Josemaria is part of a joint venture in which NGEx has a 60% stake and Japan Oil Gas and Metals National Corp. has a 40% stake.

In addition, NGEx holds a portfolio of 100%-owned, early-stage exploration projects in Chile and Argentina. It also owns a 100% interest in the GJ copper and gold project in British Columbia. The GJ project is optioned to Teck Resources Ltd., which is earning up to a 75% interest.

NGEx representatives couldn't be reached for comment.

In the private placement, which was first announced Wednesday, NGEx is issuing 17.4 million shares priced at 12.20 Swedish krona ($1.83). The price represents a 0.6% discount based on the stock's closing price that day. The offering represented a 10.2% stake in NGEx, which has a market value of $314.2 million.

Shares of NGEx, which trade under the symbol NGQ on the Toronto Stock Exchange, gained 3 Canadian cents to C$2.03 ($1.86) Thursday.

Pareto Securities AB, based in Oslo, was the sole book runner and lead manager on the offering. Skandinaviska Enskilda Banken AB, based in Stockholm, was co-manager.

The law firm of Gernandt Danielsson Advokatbyra, based in Stockholm, advised Pareto, while Vancouver and Toronto-based Cassels Brock Blackwell LLP advised NGEx.

NGEx has raised $54.8 million from seven previous private placements dating back to 2006.

The company had cash and cash equivalents of C$10.8 million as of March 31, after posting a first-quarter loss of C$9.36 million.