Silvermex
Resources Inc. Closes Brokered Private Placement for $15,000,000
December 20, 2010 (TSX:SLX) Silvermex Resources Inc. ( Silvermex
or the Company ) is pleased to announce that
it has closed its brokered private placement offering (the Offering ) previously announced on
November 26, 2010 and December 1, 2010. The Company has issued 24,193,548
units (the Units
) at $0.62 per Unit for gross proceeds of $15,000,000. A portion of the
Offering, being 1,027,049 Units with gross proceeds of $636,770, was offered
on a non-brokered basis.
Each Unit consists
of one common share of Silvermex (a Share ) and
one-half of one common share purchase warrant (each whole common share
purchase warrant, a "Warrant"). Each Warrant entitles the
holder to subscribe for one additional Share for a period of 36 months at an
exercise price of $0.90.
The Company engaged
MGI Securities Inc. as the lead agent, together with Global Hunter
Securities, LLC (together, the Agents
), to undertake the Offering. The Agents received aggregate cash compensation
equal to $1,005,426.06, representing 7% of the gross proceeds raised in the
brokered portion of the Offering and an aggregate of 1,621,655 compensation
options, equal to 7% of the number of Units sold in the brokered portion of
the Offering. The Agents compensation options will
entitle the Agents to purchase one Share for a period of 24 months from the
closing of the Offering at an exercise price of $0.71.
The Company has
agreed to pay cash compensation equal to $35,893.93, representing 7% of the
gross proceeds raised in a portion of the non-brokered Offering and an aggregate
of 57,893 compensation options, equal to 7% of the number of Units sold in a
portion of the non-brokered Offering, having the same terms as the
compensation options issued to the Agents.
The Company intends
to use the net proceeds of the Offering to advance the Company s wholly owned
La Guitarra Mine complex and the Company s
Rosario/San Marcial project and for general
corporate purposes.
Securities issued
under the Offering are subject to a hold period which will expire on April
16, 2011.
The Company also
announces it has received additional funds in the amount of approximately
$5.88 million from the exercise of approximately 14.5 million common share
purchase warrants and options over the last 60 days. These funds, combined
with existing cash, net proceeds from the Offering, receivables and
recent concentrate sales, increase the company s working
capital position to an estimated $25.8 million.
About Silvermex
Silvermex is a publicly
traded mining company focused on developing its core asset, the producing La Guitarra silver-gold property and the Temascaltepec
Mining District of Mexico. La Guitarra Mine
presently consists of two underground operation centres
and a flotation mill with a proven capacity of 320 tonnes
per day. Silvermex is evaluating options for the
expansion of existing mining operations at La Guitarra
and advancing the recently consolidated Rosario/San Marcial
Mining Camp in south eastern Sinaloa,
Mexico.
The Rosario/San Marcial mining concession consists
of two past producing mines and numerous known high-grade deposits. The
project has significant resources and historic reserves with extensive
production related infrastructure in place. Silvermex
is led by a highly experienced and successful team, comprised of top
executives from leading corporations in the silver mining sector.
About MGI
Securities Inc.
MGI is an
integrated Canadian investment dealer offering professional wealth
management solutions for individual investors, a comprehensive range of
specialized services for institutional investors, and corporate finance
advisory services for issuers, including mergers and acquisitions, equity
underwritings, corporate restructuring, structured financings, market
research, and business valuation services. MGI is based in Toronto,
with additional offices in Winnipeg, Saskatoon, Calgary
and London,
Ontario. MGI is a member
of IIROC and is a subsidiary of Jovian Capital Corporation (TSX:JOV). MGI has approximately $1.2 billion in client
assets under administration.
The Toronto Stock Exchange
has not reviewed and does not accept responsibility for the adequacy or
accuracy of this news release.
This news release does not constitute an offer to
sell or a solicitation of an offer to buy any of the securities in the United
States, nor shall there be any sale of the
securities in any state in which such offer, solicitation or sale would be
unlawful. The securities, including the common shares to be issued upon the
exercise of the warrants, have not been and will not be registered under the United
States Securities Act of 1933, as amended (the 1933 Act ), or any state
securities laws and may not be offered or sold within the United States or
to, or for the account or benefit of, U.S. persons (as defined in Regulation
S under the 1933 Act) absent such registration or an applicable exemption
from such registration requirements.
On Behalf of the Board of Directors of
Silvermex Resources Inc.
Duane Nelson
Duane Nelson
CEO & Director
For Further
information, contact:
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Duane Nelson
Director, Chief
Executive Officer
Vancouver, BC, Canada
Tel: 604-682-4004
duane@silvermexresources.com
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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 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.
Management has assumed that these will be our major projects going forward.
Risks include that we are unable to satisfy environmental or other
regulators, that we determine that our resources are not commercially viable,
or that we have difficulties due to unavailability of labour
or equipment.
While these forward-looking statements, and any
assumptions upon which they are based, are made in good faith and reflect our
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.
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