Canamex Announces Financing of up to Cdn$2,000,000 of Secured Convertible Debentures
Vancouver, BC / TheNewswire / September 29, 2015 - Canamex Resources Corp. (TSX-V: CSQ) (FSE: CX6) announces that it intends to complete a non-brokered private placement for gross proceeds of up to Cdn$2,000,000 (the "Offering"), subject to acceptance by the TSX Venture Exchange ("TSX-V").
These funds will be raised by the Company issuing an aggregate principal amount of up to Cdn$2,000,000 of secured convertible debentures (the "Debentures"), maturing in one year after closing of the Offering (the "Maturity Date"). From and after the date of issue until the Maturity Date, the Debentures will be convertible into units ("Units") at the option of the holder at a conversion price of $0.05 per Unit (the "Conversion Price").
Each Unit will be comprised of one common share of the Company ("Common Share") and one-half of one warrant ("Warrant"). Each whole Warrant will be exercisable into one Common Share on or before March 15, 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 shall 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.
The proceeds from the Offering will be used for property payments, exploration drilling, metallurgy and a Preliminary Economic Assessment with respect to the Bruner Gold Property in Nye County, Nevada, and for general working capital.
In connection with the Offering, and subject to acceptance from the TSX Venture Exchange, up to 2,100,000 compensation warrants ("Compensation Warrants") will be issued to finders. Each Compensation Warrant will be exercisable into one Common Share for two (2) years from closing of the Offering at an exercise price of $0.05 per share.
Mark Billings, Chairman and CEO of Canamex, commented, "Upon closing of this Offering, Canamex will continue with its business plan of enhancing value of the Bruner Gold Property with additional exploration and related work. The financial markets, especially for junior resource companies like ours, are exceptionally tough at present. Canamex looks forward to closing this Offering and in having financial resources to move our project forward."
On behalf of the Board of Directors
SIGNED: "Mark Billings"
Mark Billings, CEO
Contact: (514) 296-1641, mbillings@canamex.us
Forward-Looking Statements:
This news release contains forward-looking statements regarding future events and Canamex's future results. 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. Readers are cautioned that these forward-looking statements are only predictions and are subject to risks, uncertainties, and assumptions that are difficult to predict, including those identified elsewhere herein and 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.
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