Monday, February 02, 2009
Silvermex Resources Ltd. Closes Brokered Financing Of $1,500,000
Silvermex Resources Ltd. (the "Company") announces that further to its news release dated December 24, 2008, it has closed its brokered private placement of 15,000,000 units (the "Units") at a price of $0.10 per Unit for gross proceeds of $1,500,000. Each Unit consists of one common share and one-half of one share purchase warrant. Each whole warrant (a "Warrant") will entitle the holder to purchase an additional common share for a period of 18 months from closing at a price of $0.15 per share. The brokered private placement was arranged through Canaccord Capital Corporation (the "Agent").
The Agent's compensation consisted of a cash commission of 9% of the gross proceeds of the brokered private placement. The Agents were also issued 100,000 corporate finance units (the "Corporate Finance Units") the terms of which are the same as the Units and a compensation option exercisable to acquire that number of units ("Agent's Units") equal to 9% of the number of Units sold pursuant to the brokered private placement. The terms of the Agent's Units are the same as the terms of the Units. In addition, the agent received a corporate finance fee of $25,000 and a work fee of $5,000.
The common shares and Warrants comprising the Units, the Corporate Finance Units and the Agent's Units are subject to a hold period expiring June 1, 2009, as are any common shares issued on exercise of the Warrants (if exercised prior to the expiry of such hold period).
The proceeds of the private placement are intended to be used to fund work programs on the Company's San Marcial Property in Mexico and for general working capital purposes.
On Behalf of the Board of Directors of
Silvermex Resources Ltd.
Per: "Bruce Bragagnolo"
CEO & Director
For Further information, contact:
Bruce Bragagnolo, LLB
Chief Executive Officer
Vancouver, BC, Canada
For Investor Relations, contact:
Vancouver, BC, Canada
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
This News Release contains forward-looking statements. Forward looking statements are statements which relate to future events. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans, "anticipates", believes", "estimates", "predicts", "potential", or "continue or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, level of activity, performance or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements.
While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect out current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggests herein. Except as required by applicable law the Company does not intend to update any forward-looking statements to conform these statements to actual results.