Strong vote of confidence
Brixton Metals (WKN A114WV / TSXV BBB) still has a lot planned for what it describes as its “multi-generational” Thorn copper and gold project. Of course, this requires money, especially when one considers that Thorn with its 2,880 square kilometers is larger than Luxembourg. The company has now been able to raise just over 14.5 million dollars via a capital increase. The remarkable thing about this is that major shareholder BHP did not want to be diluted and increased its stake in this promising Explorer accordingly!
The first tranche of the financing, which closed on November 20, 2023, consisted of 15,016,666 units and 49,386,593 national flow-through units (NFT units). The second tranche of the offer consisted of 16,384,645 charity flow-through units (charity FT units). As a result, Brixton raised gross proceeds from both tranches totaling CAD 14,580,535.51.
Each Charity FT Unit consisted of one common share of the Company issued as a “flow-through share” within the meaning of the Income Tax Act (Canada) and one-half of one transferable warrant. Each whole warrant comprising the Charity FT Units entitles the holder to purchase one common share of the Company at a price of C$0.23 per share until November 22, 2025.
World’s largest mining company follows suit
BHP (WKN 850524), the world’s largest mining group and a major shareholder in Brixton since the end of 2022, has acquired all of the 16,384,645 units originally subscribed for by other investors as charity FT units via its subsidiary BHP Investments Canada. This means that BHP still holds 19.9% of Brixton after the financing and thus averts dilution.
Conclusion: The fact that Brixton is able to raise more than 14.5 million dollars relatively quietly in this difficult environment and that BHP does not intend to be diluted by this are two signs of confidence in CEO Gary Brixton’s company. In our view, this strongly suggests that BHP is satisfied with Brixton’s work and the results to date. In any case, the company can now start exploring the Camp Creek copper target and the Trapper gold target with freshly filled coffers. The next exploration season is also likely to include the investigation of other particularly promising areas of Thorn, of which there are many.
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According to §34 WpHG we would like to point out that partners, authors and/or employees of GOLDINVEST Consulting GmbH hold or may hold shares of Brixton Metals and therefore a conflict of interest exists or may exist. We also cannot exclude that other stock market letters, media or research firms discuss the stocks we discuss during the same period. Therefore, symmetrical information and opinion generation may occur during this period. Furthermore, there is a consulting or other service contract between Brixton Metals and GOLDINVEST Consulting GmbH, directly or indirectly, which means that there is also a conflict of interest. Especially since GOLDINVEST Consulting GmbH is remunerated in this case for the reporting on the mentioned company.
