News Release Out
Silvermex Resources Inc. Announces $12,000,000 Private Placement
11/26/2010 6:34:48 PM - Market Wire
VANCOUVER, BRITISH COLUMBIA, Nov 26, 2010 (MARKETWIRE via COMTEX News Network) --
Silvermex Resources Inc. (TSX: SLX) ("Silvermex" or the "Company") is pleased to announce that it has engaged MGI Securities Inc. (the "Agent") to undertake a private placement offering of up to 19,354,839 units (the "Units") at a price of
.62 per Unit to raise up to $12,000,000 (the "Offering").
Each Unit will consist of one common share of Silvermex and one-half of one common share purchase warrant (each whole common share purchase warrant, a "Warrant"). Each Warrant shall entitle the holder to acquire one common share of Silvermex at a price of
.90 within 36 months from closing of the Offering.
Silvermex has also granted the Agent an over-allotment option (the "Agent's Option"), pursuant to which the Agent may place an additional $3.0 million of Units. The Agent shall receive cash compensation equal to 7% of the gross proceeds raised and compensation options equal to 7% of the number of Units sold in the Offering. The Agent's compensation option will entitle the Agent to purchase one Unit at
.62 per Unit.
The proceeds from the Offering will be used to advance the Company's wholly owned La Guitarra Mine, located in the Temascaltepec Mining District of Mexico and general corporate purposes.
The Offering and closing of the financing are subject to TSX approval. The securities to be issued in the private placement will all be subject to a four-month hold period in accordance with applicable Canadian securities laws.
The securities have not been registered under the U.S. Securities Act of 1933, as amended, or any state securities laws and, until so registered, may not be offered or sold in the United States or any state or to, or for the account of, U.S. persons absent registration or an applicable exemption from registration requirements. This release does not constitute an offer for sale of securities in the United States.
About Silvermex
Silvermex is a publicly traded mining company focused on developing its core asset, the producing La Guitarra silver-gold property located in 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.
On Behalf of the Board of Directors of Silvermex Resources Inc.
Duane Nelson, CEO & Director