Canamex Resources Corp. (TSX-V: CSQ) ('Canamex' or the 'Company') is pleased to announce that it has closed the second tranche of a non-brokered private placement for gross proceeds of Cdn$415,000 (the 'Offering').
These funds were raised by the Company issuing an aggregate principal amount of Cdn$415,000 of secured convertible debentures (the 'Debentures'), maturing on November 6, 2016 (the 'Maturity Date'). From and after the date of issue until the Maturity Date, the Debentures are convertible into units ('Units') at the option of the holder at a conversion price of $0.05 per Unit (the 'Conversion Price').
Each Unit is comprised of one common share of the Company ('Common Share') and one-half of one warrant (each whole warrant, a 'Warrant'). Each Warrant will be exercisable into one Common Share on or before May 6, 2017 at an exercise price of $0.05 per share. Interest on the Debentures shall be paid quarterly in arrears, at an annual rate of interest of 10% per annum.
The Debentures will have a first ranking security over the Company's interest in its joint venture with Provex Resources in respect of the Bruner Gold Property, such joint venture to be formally set up in the near future. Until that time, the Debentures will be secured by the general assets of the Company.
The proceeds from the Offering will be used for exploration drilling, metallurgy and a Preliminary Economic Assessment with respect to the Bruner Gold Property in Nye County, Nevada, and for general working capital.
The Debentures and any securities that may be issued on conversion of the Debentures, including shares issued upon exercise of the Warrants, are subject to a hold period under applicable Canadian securities laws expiring on March 7, 2016, and will be subject to such further restrictions on resale as may apply under applicable foreign securities laws.
On October 20, 2015, the Company announced the closing of the first tranche of Debentures for Cdn$1,500,000. In total, Canamex has raised Cdn$1,915,000 through the issuance of Debentures.
Mark Billings, Chairman and CEO of Canamex, commented, 'I would like to thank these new investors for the confidence that they have placed in our Company and our Bruner Gold Project in Nye County, Nevada. These additional funds will go to productive uses at Bruner, where we have recently recommenced drilling at Paymaster hill.'
On behalf of the Board of Directors
SIGNED: 'Mark Billings'
Mark Billings, CEO
Contact: (514) 296-1641, [email protected]
Forward-Looking Statements:
This news release contains forward-looking statements regarding future events and Canamex's future results, including the use of proceeds from the Offering and timing of the formation of the joint venture in respect of the Bruner Gold Property. These statements are based on current expectations, estimates, forecasts, and projections about the industry in which Canamex operates and the beliefs and assumptions of Canamex's management. Words such as 'expects,' 'anticipates,' 'targets,' 'goals,' 'projects,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' 'continues,' 'may,' variations of such words, and similar expressions, are intended to identify such forward-looking statements. In addition, any statements that refer to projections of Canamex's future financial performance, Canamex's anticipated growth and potentials in its business and other characterizations of future events or circumstances are forward-looking statements. Such forward-looking statements are based on management's expectations and assumptions, including, without limitation, that the Company's development plans will not change, that the proceeds from the Offering are used as planned and that there are no unforeseen delays in the formation of the joint venture. Readers are cautioned that these forward-looking statements are only predictions and are subject to risks and uncertainties that are difficult to predict, including changes to the Company's development plans, delays in the formation of the joint venture and other risks identified elsewhere herein and in Canamex's filings on www.sedar.com. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. Canamex undertakes no obligation to revise or update any forward-looking statements for any reason.
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.