Deep sea mining puts $560 billion in land extraction at risk — report
Even in optimal scenarios, the activity would generate only $6.25 million in tax revenue for countries involved, says Planet Tracker.
Due to strong investor interest, Yukon-focused critical minerals explorer Fireweed Metals’ (TSXV: FWZ) says it will increase its previously announced financing to a total of approximately C$35 million.
Earlier in the week, the company formerly known as Fireweed Zinc announced a private placement to raise aggregate proceeds of C$27.5 million. The financing consists of three parts: 28.3 million common shares at C$0.74 per share, 3 million flow-through shares at C$0.88 per share, and 3.3 million “premium” flow-through shares at C$1.20 per share.
As disclosed in a news release Monday, this financing round included lead orders by members of the Lundin family, who did not hold any shares previously, as well as other key shareholders. The Lundins’ participation in the offering would make them collectively Fireweed’s largest shareholder. Orders from other key shareholders are expected to reach over C$5 million.
Since that announcement, the financing has attracted plenty of investor interest, as the share placement has been substantially oversubscribed. As a result, Fireweed will now issue 31.2 million common shares, 4.9 million FT shares and 6.3 million premium FT shares, all at the same price, for proceeds of up to C$34.9 million.
The funds will provide capital for what the company is calling the “most significant” exploration program ever initiated on its projects in northern Canada, headlined by the district-scale Macmillan Pass project located approximately 372 km east of Whitehorse.
This 940 km2 property is host to the Tom and Jason zinc-lead-silver deposits, which together contain 11.21 million tonnes of indicated resources at 6.59% zinc, 2.48% lead and 21.33 g/t silver, plus 39.47 million tonnes inferred at 5.84% zinc, 3.14% lead and 38.15 g/t silver. This mineral resource estimate, completed in January 2018, puts Macmillan Pass among the world’s most significant zinc resources.
Other discoveries on the property include Boundary Zone, Boundary Zone West, Tom North Zone and End Zone, which have significant zinc-lead-silver mineralization drilled but not yet classified as mineral resources.
The Nidd property, acquired November 2018, hosts established zinc mineralization in Boundary Zone, where historic drilling included intersections of 224 metres at 2.5% zinc and 0.3% lead, including 4.5 metres of 16.4% zinc, demonstrating potential for both bulk tonnage open pit and high-grade underground mineralization.
“We have been impressed with the progress made to date,”Adam Lundin said on behalf of the Lundin family. “With the experience we have in the sector, opportunities like this seldomly come around and we view Fireweed has a district scale opportunity. The recent discovery at Boundary Zone adds to the solid mineralization characteristics of the Tom and Jason deposits.”
The Macmillan Pass project also includes large blocks of adjacent claims with known showings and significant upside exploration potential. The 2022 drill program is now complete, with assay results being announced as they are received and interpreted.
Next to Macmillan Pass, Fireweed is also looking to develop the Mactung tungsten and Gayna River zinc-lead-gallium-germanium projects.
The Mactung property currently hosts one of the largest and highest-grade tungsten deposits in the world, containing historical indicated resources of 33 million tonnes grading 0.88% tungsten trioxide plus inferred resources of 11.8 million tonnes grading 0.78% tungsten trioxide.
The Gayna River project hosts extensive critical minerals mineralization, as outlined by 28,000 metres of historical drilling by Rio Tinto.
Shares of Fireweed Metals soared to a 52-week high of C$0.89 by 12:30 p.m. ET Wednesday following the latest announcement, placing the company’s market value at C$81.8 million. The stock opened at C$0.80 and traded as low as C$0.50 during the past 52-week period.
