Kazax Minerals has started a diamond drilling at the Lomonosovskoye project. The program will include drilling of 12000 metres incorporating 19 geotechnical, 9 hydrogeological and 21 exploration holes.
The program is focused on still-open deposit areas and aimed at upgrading mineral resources in the current pit areas. The program also seeks to confirm geotechnical and hydrogeological information dating to the Soviet era. Results are expected by the end of the year.
Kazax Minerals has also closed a non-brokered private placement of convertible unsecured non-interest bearing debentures for aggregate proceeds of US$19,568,893. The debentures will mature on September 26, 2016 and are direct, unsecured obligations, ranking with all other company unsecured indebtedness. Upon receipt of all necessary approvals from the Ministry of Industry and New Technologies on or before the debentures maturity dates, the debenture principal will automatically convert into company units at $0.15 per unit.
Each unit comprises one company common share and one-half of one share purchase warrant, with each whole warrant exercisable to purchase one additional share until September 26, 2016, at an exercise price of $0.35.
Of the aggregate proceeds, US$10,568,893 was received by Kazax prior to its announcement of the intended private placement and, following the announcement, Kazax received the remaining US$9 million. Consequently, the company has about US$9.29 million in cash on hand. Placement proceeds will be used for general working capital purposes.
Meanwhile, Kazax has announced the resignation of Brian Egan as chief financial officer. He will continue to serve the company as an advisor. While Kazax continues to interview candidates as successor to Brian Egan, the company’s chief accountant Nuriya Kamaledinova will serve as chief financial officer in a temporary capacity.