Ximen seeks financing as work advances at historic Kenville gold mine
Work continues at the Kenville Gold Mine west of Nelson as Ximen Mining Corp. seeks financing for planned underground portal and decline construction.
Photo: Ximen Mining Corp.
Work is continuing at the historic Kenville Gold Mine west of Nelson as Ximen Mining Corp. seeks longer-term financing for a planned new underground portal and decline.
The company announced Sept. 18 that it is arranging a bridge private placement of up to $350,000 to support about 30 days of site operations while it negotiates financing for the larger underground development program. Ximen said it is in discussions with several groups about potential financing arrangements but has not reached a definitive agreement.
The company is targeting the end of October for construction of the new portal, although that schedule remains subject to financing, completion of outstanding engineering work and permit conditions, contractor availability and weather.
On Sept. 10, Ximen said site construction and preparation activities were underway. Equipment is now at Kenville, electrical power has been connected and a small crew remains at work.
The company has also been installing liners in flood-retention ponds as part of required surface-water management work. Outstanding engineering items identified by Ximen include reports on building foundations and mine-road stability.
Ximen said it is also in discussions with potential contractors for construction of the portal.
The proposed $350,000 non-brokered private placement consists of up to 4.375 million units priced at eight cents each. Each unit would include one common share and a warrant allowing the holder to purchase another share for 12 cents within 18 months.
Ximen expects the financing to close Sept. 25, subject to regulatory approvals. The company said the proceeds would be used to continue work at Kenville while it pursues longer-term financing for the portal and decline.
The Kenville project has provincial authorization for a new underground access portal, about 1,200 metres of underground development and 20,250 metres of underground exploration drilling.
The B.C. Geological Survey describes Kenville as a past-producing mine about eight kilometres west of Nelson on the north slope of Toad Mountain. Originally known as the Granite-Poorman mine, it was the first underground lode-gold mine in British Columbia.
Claims at the property were first staked in 1888 and milling began the following year. The mine ceased operations in 1949, although small amounts of high-grade ore were shipped in 1960 and 1961 and the mill remained in use until 1962.
Ximen acquired the Kenville property in 2019 and has since pursued permitting, engineering and site work for new underground access.
The work now underway is tied to the permitted portal, decline and underground drilling program. Ximen’s Sept. 18 update does not give a date for commercial gold production.
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