MERREX GOLD INC. CLOSES BROKERED PRIVATE PLACEMENT OF C$10,170,000
NOT FOR DISTRIBUTION TO
UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Gregory Isenor, P.Geo., President and CEO of Merrex
Gold Inc. (�Merrex�) (TSX
Venture: MXI) is pleased to announce the closing of the brokered private placement
financing led by Casimir
Capital LP (the �Agent�) as lead agent and sole book runner, previously announced by news release dated March 25, 2011. Selling
group participants included Raymond James Ltd., Strategic Energy Research and
Capital, LLC, and Grafton Securities Canada Limited.
Under the terms of the Private
Placement, Merrex issued a total of 20,340,000 units
(the �Units�) at a price of C$0.50
per Unit for total gross proceeds of C$10,170,000 (the �Private Placement�). Each Unit consisted of one (1)
common share in the capital of Merrex (a �Common Share�) and one-half (1/2) of
one common share purchase warrant (each whole warrant being a �Warrant�). Each Warrant entitles the
holder thereof to purchase one (1) additional Common Share at an exercise price
of C$0.75 per share for a period of eighteen (18) months following the closing
of the Private Placement.
Merrex paid the Agent a cash commission of
C$711,900 and issued to the Agent 1,423,800 common share purchase warrants (the �Agent�s Warrants�). Each Agent�s Warrant entitles the holder thereof to purchase one (1) additional Common Share at
an exercise price of C$0.75 per share for a period of eighteen (18) months
following the closing of the Private Placement.
The Private Placement includes an over-allotment option allowing the
Agent to offer up to an additional 2,660,000 Units for gross proceeds of
C$1,330,000, on the same terms as the Private Placement, exercisable, in whole
or in part, from time to time, but in any event, no later than thirty (30) days
following the closing date.
The securities issued under the Private
Placement will be subject to a four-month and one-day hold period, expiring
August 1st, 2011.
Merrex will use the net proceeds of the
Private Placement primarily for exploration work on its property located in West Mali and for
working capital purposes.
About the Siribaya Gold Project
The 848 km2 Siribaya Gold Project
in West Mali is Merrex�s flagship property. The Siribaya Gold Project is being explored in conjunction with
Merrex�s 50% earn-in partner IAMGOLD Corporation. The
2011 exploration program within the Siribaya
structures include 17,000 metres of RC drilling to
further extend the explored strike length of the Siribaya
trends from three to six kilometres, and 10,000 metres of diamond drilling to increase the present NI
43-101 resource.
Outside of the Siribaya structures new
mineralized trends have been discovered; Siribaya
West which lies to the west of the Bambadinka trend,
and the Babara trends which lie to the east of Siribaya on the Babara and Kofia permits. These trends will be further tested during
the 2011 field season.
Merrex is a
Mali focused gold exploration company with experienced management, a solid
exploration team, a prominent gold-producer as a partner and an expanding gold
resource; a winning combination offering investors an extraordinary
opportunity.
Please visit our website at www.merrexgold.com for the most recent corporate presentation.
On Behalf of the Board
Gregory Isenor, P.Geo.
President & CEO
Merrex Gold
Inc.
1550 Bedford Highway
Suite 802, Sun Tower
Bedford, NS B4A 1E6
Tel.: (902) 832-5555
Fax: (902) 832-2223
info@merrexgold.com
If you wish
This press release includes certain statements that may be deemed
"forward-looking statements". All statements in this release, other
than statements of historical facts, that address future exploration drilling,
exploration activities and events or developments that the Company expects, are
forward looking statements. Although the Company believes the expectations
expressed in such forward-looking statements are based on reasonable
assumptions, such statements are not guarantees of future performance and
actual results or developments may differ materially from those in
forward-looking statements. Factors that could cause actual results to differ
materially from those in forward-looking statements include market prices,
exploitation and exploration successes, continued availability of capital and
financing, and general economic, market or business conditions.
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.