Canamex Closes Equity Financing for Gross Proceeds of $1,524,229, Including Additional Position Taken by Hecla Canada Ltd.
Vancouver, British Columbia / TNW-ACCESSWIRE / October 3, 2014 / Canamex Resources Corp. (TSX-V: CSQ) (OTCQX: CNMXF) (FSE: CX6) announces further to its News Release dated September 8, 2014 that it has received final acceptance from the TSX Venture Exchange and has closed its equity financing for gross proceeds of $1,524,229. The Company is pleased that Hecla Canada Ltd. (refer to CSQ News Release dated November 19, 2012) elected to increase its position in Canamex by participating in this financing.
In accordance with the provisions of the Subscription Agreements received, on October 3, 2014 the Company issued a total of 7,258,234 Units at $0.21 per Unit, each Unit consisting of one common share and one-half (1/2) share purchase warrant, each whole warrant entitling the holder to purchase one (1) additional common share at $0.30 per share on or before October 2, 2016.
All of these shares, including any shares issued on exercise of the warrants, will be subject to a hold period under applicable Canadian securities laws expiring on February 4, 2015, and will be subject to such further restrictions on resale as may apply under applicable foreign securities laws.
Proceeds will be used for exploration and development of the Company's Bruner Gold Project in Nevada, which will include primarily core drilling, and for general working capital.
Three (3) Insiders, together with Hecla as an over 10% shareholder (the "Related Parties"), directly and/or indirectly subscribed for an aggregate of 3,928,572 Units from the Financing (not 952,382 as previously disclosed), which increased those Related Parties' pro rata shareholdings in the Company (the "Related PartyTransaction"). All of the independent directors of the Company, acting in good faith, have determined that the fair market value of the securities being issued and the consideration paid is reasonable and, with the value of the Related Party Transaction being less than 25% of the Company's market capitalization, is exempt from the formal valuation and minority shareholder approval requirements of the Multilateral Instrument 61-101.
Canamex President Greg Hahn commented "We are delighted that Hecla continues to support the Company, as they add a wealth of experience in the gold exploration and mining sector, and we believe they share our vision for our flagship Bruner Gold Project."
ON BEHALF OF THE BOARD
SIGNED: "GregHahn"
Greg Hahn, President, Interim CEO and Director
Contact: Greg Hahn (604) 336-8612
Renmark Financial Communications Inc.
Robert Thaemlitz: rthaemlitz@renmarkfinancial.com
Henri Perron: hperron@renmarkfinancial.com
Tel.: (514) 939-3989 or (416) 644-2020
The securities referred to in this news release have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements.
This news release does not constitute an offer for sale of securities for sale, nor a solicitation for offers to buy any securities. Any public offering of securities in the United States must be made by means of a prospectus containing detailed information about the company and management, as well as financial statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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