PNX Metals (ASX:PNX) is now debt free after successfully completing the previously outlined $1.8 million debt for equity swap.
A $1.2 million loan was settled through the issue of 80 million PNX shares.
The company is now well positioned to continue the development of its Hayes Creek zinc-gold-silver project in the Pine Creek region of the Northern Territory.
James Fox, managing director, said: “The company now has a strong, debt-free balance sheet, and consequently a robust platform for growth of the business.
“A number of important milestones have recently been achieved, including the acquisition of the Fountain Head site for plant and tailings and 100% of the Moline Exploration project.
“We are working hard on the DFS, due for completion later in 2018, and advancing approvals to mine.”
Equity was issued at a premium to the current share price
Positively for PNX, the shares it issued to repay the outstanding debt were valued at $0.0173, which represents a premium to the current share price of $0.015.
Further cash received to fund busy 2018 schedule
Separately, PNX has also received a research tax refund of $0.4 million in relation to the 2017 financial year.
A definitive feasibility study (DFS) is currently underway at Hayes Creek, following the successful completion of a pre-feasibility study (PFS) in July 2017.
The PFS forecasts a net present value (NPV) of $133 million, based on net smelter revenue from the sale of zinc and precious metals concentrates of $628 million over a 6.5-year mine life.
Hayes Creek features the Mt Bonnie and Iron Blow zinc-gold-silver deposits.
Drill results expected soon
During the December quarter, PNX completed a 75 hole, 4,063-metre drill program for DFS purposes.
Assay results are pending and are expected shortly.