GXM to double shrsbetween this pp and the $215K already raised - they should be about 20MM FD I think with $1.5 approx in cash
Geodex arranges $1.2-million private placement
Geodex Minerals Ltd GXM
Shares issued 9,336,020 Nov 24 close $0.21
Tue 25 Nov 2003 News Release
Mr. Jack Maris reports
GEODEX ANNOUNCES $1.2 MM PRIVATE PLACEMENT
Geodex Minerals has entered into an engagement letter with Pacific
International Securities Inc. respecting a best-efforts offering of
securities of the company by way of private placement for total gross
proceeds of up to $1.2-million.
The offering will consist of up to four million flow-through units and up
to two million non-flow-through units. Each flow-through unit will be
priced at 20 cents and will consist of one flow-through common share of the
company and one-half of one non-transferable share purchase warrant, with
each whole warrant entitling the investor to acquire one additional
non-flow-through common share of the company for a period of two years at a
price of 35 cents if exercised in year one and 40 cents if exercised in
year two. Each non-flow-through unit will be also priced at 20 cents and
will consist of one non-flow-through common share of the company and
one-half of one non-transferable share purchase warrant, with each whole
warrant entitling the investor to acquire one additional non-flow-through
common share of the company for a period of two years at a price of 25
cents if exercised in year one and 30 cents if exercised in year two.
Pacific International will have the option, exercisable at any time prior
to closing, to increase the size of the offering of each type of units by
15 per cent.
Pacific International will act as the company's lead agent with respect to
the offering on a best-efforts basis, with other participating agents, if
any, to be mutually agreed upon by Pacific International and Geodex. In
consideration for providing its services, Geodex has agreed to pay to
Pacific International on closing a corporate finance of $15,000 and a cash
commission of 7 per cent of the gross proceeds of the offering. In
addition, Geodex will grant to Pacific International on closing a one-year
option to purchase units equal in number to 10 per cent of the total number
of both flow-through and non-flow-through units sold pursuant to the
offering. Each agent's unit will be priced at 25 cents and will consist of
one non-flow-through common share of the company and one-half of one share
purchase warrant, with each whole warrant entitling the holder to acquire
one additional non-flow-through common share of the company for a period of
two years from the date of closing of the offering at a price of 25 cents
if exercised in year one and 30 cents if exercised in year two. Geodex has
also agreed to pay Pacific International's reasonable expenses incurred in
connection with the offering.
Proceeds of the private placement will be used to finance exploration on
Geodex's gold properties in New Brunswick and Ontario, and for general
working capital. At the company's Armstrong Brook property, located near
Saint John, N.B., the company intends to conduct a major program of IP
surveying followed by diamond drilling to test areas outlined by 2003
exploration.
At the company's New Canaan property, located near Moncton, N.B., Geodex
proposes to explore a seven-kilometre gold-in-soil anomaly which coincides
with an inferred regional fault zone. Initial work will consist of grid
soil sampling, prospecting and ground geophysical surveys.
Geodex is party to a 50:50 joint venture with Moneta Porcupine Mines Inc.,
based in Toronto, Ont., respecting the Potter Stock gold property near
Timmins, Ont. Reconnaissance soil sampling done this year using MMI and
enzyme leach methods yielded anomalous results over three targets.
Follow-up grid soil sampling, geophysical surveying and diamond drilling
are being planned for the property. Moneta is the operator of the property.
The proposed private placement is subject to regulatory approval.
(c) Copyright 2003 Canjex Publishing Ltd. https://www.stockwatch.com