financingTemex arranges $1.5-million private placement
2009-05-05 15:12 ET - News Release
Mr. Ian Campbell reports
TEMEX ANNOUNCES PRIVATE PLACEMENT FINANCING
Temex Resources Corp. has entered into an agreement with PI Financial Corp. for a private placement of up to three million units at a price of 25 cents per unit and up to 2.5 million flow-through shares at a price of 30 cents per share for gross proceeds of up to $1.5-million. Each unit will comprise one common share and one-half of one common share purchase warrant. Each whole common share purchase warrant will entitle the holder to purchase one common share of the company at a price of 32 cents for a 24-month period. The offering is being made by PI on a commercially reasonable efforts basis and is expected to close on or about May 26, 2009. The offering is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals.
The company has agreed to grant PI an overallotment option exercisable prior to the closing of the offering, which will allow PI to offer up to one million additional units and up to 830,000 additional flow-through shares.
Proceeds from the offering are expected to be used to finance exploration work on the company's Canadian properties and for general corporate purposes. The gross proceeds raised from the sale of flow-through shares under the offering will be used for Canadian exploration expense as defined in the Income Tax Act (Canada) and will be renounced for the 2009 taxation year.