New Jersey Mining (NJMC) has attracted Hecla Mining (HL) as a strategic investor in the company, as the latter is investing US$0.5M in a placement priced at $0.13 per unit, with each unit consisting of one common share and half a warrant (with each full warrant allowing the warrant holder to purchase an additional share at US$0.22 per share).
New Jersey Mining also received $3M from selling the Toboggan project to Hecla. The property is located just five kilometers away from New Jersey’s Golden Chest mine, and consists of 2,100 acres over 106 mining claims. New Jersey Mining played it smart, as it also defined an ‘area of interest’ around the property, and retains a 2% NSR (of which Hecla can repurchase 1% for US$1M).
A good deal for New Jersey Mining, as it raises $3.5M, whilst attracting Hecla Mining as strategic investor in the company, adding even more credibility to New Jersey’s business plan.