Oremex CDN$4,000,000 Private Placement Financing
Vancouver, Canada (ots/PRNewswire)
Oremex Resources Inc. (TSXV:
ORM) (the "Company") announced that it will proceed with a private
placement consisting of up to 5,333,333 units ("Units") at CDN$0.75
per Unit for gross proceeds of approximately CDN$4,000,000. The
Company has also agreed to grant an over-allotment option for up to
an additional 1,333,333 units at CDN$0.75 or CDN$1,000,000.Each unit will consist of one common share and one-half of one share purchase warrant (a "Unit"). One whole warrant will entitle the holder to purchase one additional common share for a period of 18 months at a price of CDN$0.95 per warrant share, subject to an acceleration provision such that if, at any time following four months after the closing of the financing, the closing price per share on the TSX Venture Exchange is CDN$2.00 or higher for fifteen (15) consecutive business days, then the Company may give the investors notice that the warrants must be exercised or they will expire within 30 days of such notice.
The Company has retained Element & Associates Corporate & Project
Finance Limited ("Element") to act as consultant for the Offering.
Element will receive an 8% commission on the sale of these units.If all of the Units are sold, including the over-allotment option, the net proceeds to be realized by the Company from the private placement will be approximately CDN$4,600,000. The proceeds will be used to fund further in-fill, expansion and diamond drilling related development work and a feasibility study on the Tejamen, Mexico property, further exploration work on the other mineral properties held by the Company in Mexico, and for general working capital.
The securities to be issued under the Offering shall be subject to a four month hold period, and the Offering is subject to the acceptance of the TSX Venture Exchange.
The TSX Venture Exchange has not reviewed or does not accept responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and, therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from registration is available.
Contact:
For further information: Don Smith CA MBA, CFO, Telephone:
+1-604-683-5651, Fax: +1-604-630-0141, or send questions and comments
to: info@oremex.com