RE: IAMGOLD transaction
May 02, 2011 14:00 ET
Merrex Closes Private Placement With IAMGOLD
HALIFAX, NOVA SCOTIA--(Marketwire - May 2, 2011) - Gregory Isenor, P.Geo., President and CEO of Merrex Gold Inc. ("Merrex") (TSX VENTURE:MXI) is pleased to announce that the private placement to IAMGOLD Corporation ("IAMGOLD") has closed. (News release March 10, 2011)
Theprivate placement of 4,545,455 common shares at
.55 per share nettedto treasury C$2,500,000. The placee, IAMGOLD, is Merrex's 50% earn-inpartner on the Siribaya Gold Project in West Mali and, after closingthis placement, IAMGOLD will hold 13,116,883 common shares representing11.37% of Merrex's issued capital. The shares are subject to afour-month hold period.
About the Siribaya Gold Project
The 848 km2Siribaya Gold Project in West Mali is Merrex's flagship property. TheSiribaya Gold Project is being explored in conjunction with Merrex's 50%earn-in partner IAMGOLD Corporation. The 2011 exploration programwithin the Siribaya mega-structure includes 17,000 metres of RC drillingto further extend the explored strike length of the Siribaya trendsfrom three to six kilometres, and 10,000 metres of diamond drilling toincrease the present NI 43-101 resource.
Outside of the Siribayastructures new mineralized trends have been discovered: Siribaya Westwhich lies to the west of the Bambadinka trend, and the Babara trendswhich lie to the east of Siribaya on the Babara and Kofia permits. Thesetrends will be further tested during the 2011 field season.
Merrexis a Mali focused gold exploration company with experienced management,a solid exploration team, a prominent gold-producer as a partner and anexpanding gold resource … a winning combination offering investors anextraordinary opportunity.
Please visit our website at www.merrexgold.com for the most recent corporate presentation.
On Behalf of the Board
Gregory Isenor, P.Geo., President & CEO