Argex Titanium Holds First Closing of PP $792,500 MONTREAL, Qubec – December 18, 2017 – Argex Titanium Inc. (TSX: RGX) (“Argex”) is pleased to announce that it has held a first closing of a private placement at which it issued an aggregate of 9,450,000 “hard-dollar” units (“HD Units”) for gross proceeds of $472,500 and 6,400,000 “flow-through” units (“FT Units”) for gross proceeds of $320,000 to arm’s-length “accredited investors” at a price of $0.05 per unit, for aggregate gross proceeds to Argex of $792,500.
Each of the HD Units is comprised of one common share and one common share purchase warrant while each of the FT Units is comprised of one “flow-through” common share and one-half common share purchase warrant. Each full warrant entitles its holder to acquire one additional Argex common share at a price of $0.06 for a period of 24 months.
Argex will use the proceeds from the sale of the FT Units for exploration on its Lac Brl iron-titanium (Fe-Ti) property in Qubec and the net proceeds from the sale of the HD Units for working capital.
“Argex’s Management will continue to diligently work on all relevant financial strategies to allow Argex to reach its full potential. We truly believe that our goal to become a low-cost producer of TiO2 pigments and a preferred technology provider to TiO2 producers will be achieved”, stated Mazen Alnaimi, Argex’s Chairman and CEO.
At the first closing, Argex also issued an aggregate of 1,043,000 “broker warrants” to various securities dealers, representing an amount equal to 7% of the number of units sold through such dealers. Each of the “broker warrants” entitles its holder to purchase one additional Argex common share at a price of $0.0528 for a period of 24 months.
Argex expects to hold additional closings of the private placement, subject to an aggregate maximum of 20,000,000 HD Units ($1,000,000) and 10,000,000 FT Units ($500,000). The securities issued at the first closing are subject to a four-month “hold period” under applicable securities regulations.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein, and these securities will not be offered or sold in any jurisdiction in which their offer or sale would be unlawful. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”), or any state securities laws of the United States. Accordingly, these securities will not be offered or sold to persons within the United States unless an exemption from the registration requirements of the 1933 Act and applicable state securities laws is available.