Canadian junior miner PJX Resources (TSXV: PJX / OTC: PJXRF) has unveiled a C$1.65 million capital raise through a non-brokered private placement, signaling renewed confidence in its exploration strategy targeting battery and precious metals. The financing structure offers both flow-through shares priced at CA$0.14 and standard units at CA$0.12, with attached warrants exercisable at CA$0.20 – a 66% premium to the base offering price – providing investors optionality amid rising zinc and silver prices.
The capital injection comes as PJX accelerates exploration at its flagship Dewdney Trail Property in British Columbia’s historic Sullivan Mining District. Recent geological breakthroughs have revealed three Sedimentary Exhalative (Sedex) horizons – the same deposit type that sustained the legendary Sullivan mine’s 90-year production of 120 million tonnes of silver-lead-zinc ore. “We’re hunting elephants in elephant country,” CEO John Keating told CNBC, referencing the property’s strategic positioning 20km east of the historical giant.
- Strategic positioning: 680km² land package in world-class mining jurisdiction
- Technical validation: 1.6km magnetic anomaly with surface mineralization matching Sullivan’s geochemical fingerprint
- Infrastructure advantage: Rail access and power infrastructure within trucking distance
- Market timing: Zinc inventories hit 4-year lows as clean energy demand accelerates
Risk Considerations
- Equity dilution from 12.4 million new shares represents 15% of current float
- Extended timeline for flow-through expenditure requirements (Dec 2026)
- Early-stage exploration – no mineral resource estimate yet established
07/09/2025 – 09:20 PM
TORONTO, ON / ACCESS Newswire / July 9, 2025 / PJX Resources confirms completion of its fully subscribed private placement, with proceeds earmarked for aggressive summer drilling campaigns. The company plans to test high-priority targets showing Sullivan-type mineralization – a geological signature that once powered one of Canada’s most prolific base metal mines.
Geophysical surveys have identified multiple anomalies extending over 1.6 kilometers, with surface samples containing up to 8.2% zinc and 42g/t silver. “Our team is chasing what could be Sullivan’s little brother,” said Keating, noting that modern exploration techniques allow targeting at depths impossible during the original mine’s 1910-2001 operation.
Capital Structure & Strategic Positioning
The financing includes:
- CA$0.14 flow-through units (55% premium to 30-day VWAP)
- 24-month warrants with CA$0.20 strike price
- Insider participation aligning management with shareholder interests
The Sullivan Parallel
Historical context underscores the potential scale:
| Sullivan Mine (Historical) | Dewdney Trail Targets | |
|---|---|---|
| Production | 120M tonnes @ 6.5% Pb, 5.6% Zn | Surface samples up to 8.2% Zn |
| Mine Life | 90 years | 5km of untested strike length |
| Infrastructure | Rail, smelting complex | Existing transport corridors |
Key Investor Questions
What’s the timeline for resource definition?
Phase 1 drilling begins July 15 with assay results expected Q3 2025. Resource modeling could commence with consistent intercepts.
How does this financing impact existing shareholders?
The raise increases shares outstanding by 12%, but warrant terms provide upside protection through CA$0.20 strike price.
What’s the competitive landscape?
PJX controls 680km² in a district hosting Teck Resources’ historic operations, with majors actively scouting for zinc-silver assets.
Forward-looking: While early stage, PJX’s combination of strategic acreage, geological evidence, and tightened metal markets creates compelling asymmetrical upside. The next 6 months of drill results could redefine this junior’s valuation trajectory.
Disclosure: This is not investment advice. Consult financial professionals before making investment decisions. Mineral exploration involves high risk of capital loss.
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