News Release - November 12, 2014
Geologix Update And Private Placement Offer
Vancouver, BC -- November 12, 2014 - Geologix Explorations Inc. [TSX: GIX] ("Geologix" or "the Company") is pleased to announce the following updates on its affairs.
Geologix has received four environmental permit approvals from SEMARNAT (Secretaria de Medio Ambiente y Recursos Naturales) in Mexico in addition to its existing approved primary environmental permit (MIA). The Company's Tepal project in Mexico is now fully compliant in its environmental and archeological permits.
The Company has also completed the sale of the Consejo Property in Durango State to Argonaut having received the second and final payment of US$348,000.
The Company intends to carry out a private placement with various investors of up to $500,000 in convertible, unsecured, 10% (interest payable every six months), three year promissory notes. Insiders have committed to provide $330,000 of the financing. Priority for placement of the balance of the financing will be given to existing shareholders.
The principal and accrued interest due under the notes is convertible at any time into common shares of the Company at $0.045 per share. The Company may repay the note with interest after six months. Upon receipt of the Company's repayment notification, note holders will have a 10 day election period to convert the note plus accrued interest into shares or to receive cash.
Dunham Craig, Geologix's President and CEO, stated: "Although we have sufficient cash and receivables to operate through 2015, the Company has determined to strengthen its balance sheet with a participating priority given to existing shareholders who share the same fundamental asset value opinion as management. We continue to keep our 100% owned Tepal Project asset in a clean and unencumbered condition until funding conditions and terms are reasonable for both the project and our shareholders."
On behalf of the Board of Directors
Dunham Craig, President & CEO
Investor Relations
For further information please contact Investor Relations, either by email (
ir@geologix.ca) or phone (604-428-3664).
About Geologix
Geologix Explorations Inc. is a mineral exploration and development company focused on acquiring, exploring, and developing mineral resource opportunities with the potential to host profitable mining operations. The Company's primary focus is the Tepal Gold-Copper Porphyry Project in Michoacán state, Mexico. On March 19, 2013, the Company announced a Prefeasibility Study for the Project that indicated an 11.5 year mine life with payable production of 1.12 M oz. gold and 503 M lbs. copper, resulting in a post-tax NPV of $421 million at a 5% discount rate. The positive results of this study have led the Company to continue to work towards both completing a Feasibility Study for the Project and arranging the necessary financing to advance the Project to production.