TIEX - CLOSES FINANCING WITH MINERALFIELDS GROUP
Tiex Inc. closed, on July 26, 2011, a non-brokered private placement of $760,000 with MineralFields Group. The Private Placement consisted of 545,454 units ("Common Units") at a price of
.11 per Common Unit for gross proceeds of $60,000; and 5,384,614 units ("Flow-Through Units") at a price of
.13 per Flow-Through Unit for gross proceeds of $700,000. Each Common Unit consists of one common share and one common share purchase warrant, each common share purchase warrant entitling the holder to acquire until July 25, 2013 one common share of the Company at
.15 per share. Each Flow-Through Unit consists of one common share of the Company issued on a flow-through basis pursuant to the Income Tax Act (Canada) and one-half of one common share purchase warrant, with each whole common share purchase warrant entitling the holder to purchase until July 25, 2013 one common share at a price of
.15 per share. The Private Placement is subject to final regulatory approval.
In connection with the Private Placement, the Company paid finders' fees to First Canadian Securities, a division of Limited Market Dealer Inc., of $45,600 and 415,104 finder's fee options (of which 38,181 relate to the Common Units sold (the "Common Finder's Option") and 376,923 relate to the Flow-Through Units sold (the "Flow-Through Finder's Option"). Each finder's fee option is exercisable until July 25, 2013 at a price of
.11 per finder's fee option. Each Common Finder's Option consists of one common share and one common share purchase warrant entitling the holder to purchase until July 25, 2013 one common share at a price of
.15 per share. Each Flow-Through Finder's Option consists of one common share and one-half of one common share purchase warrant, with each whole common share purchase warrant entitling the holder to purchase until July 25, 2013 one common share at a price of
.15 per share.
The Common Units, Flow-Through Units, Common Finder's Option, the Flow-Through Finder's Option and the underlying securities are subject to a four month hold period ending November 26, 2011.
MineralFields Group (a division of Pathway Asset Management), based in Toronto, Montreal, Vancouver and Calgary, is a mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnership to investors throughout Canada as well as hard-dollar resource limited partnerships to investors throughout the world. The sector focus is on gold and precious metals, base metals, rare earths and lithium, potash, uranium, oil, coal and gas. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds (including the Pathway Multi Series Funds Inc. corporate-class mutual fund series). Information about MineralFields Group is available at www.mineralfields.com.
First Canadian Securities (a division of Limited Market Dealer Inc.) is active in leading resource financings (both flow-through and hard dollar PIPE financings) on competitive, effective and service-friendly terms, and offers investment banking, mergers and acquisitions, and mining industry consulting, services to resource companies. MineralFields and Pathway have financed several hundred mining and oil and gas exploration companies to date through First Canadian Securities, and have raised over $1 billion in their ten year history.
Ken Faulkner, President and CEO of Tiex, states: "We are pleased to establish a relationship with MineralFields Group and this is an important milestone in the growth of Tiex. We look forward to working with MineralFields as we develop our holdings in the Quesnel Trough area. The funds received on the Private Placement will allow the Company to complete the multi-faceted exploration program on its Gold Creek, Cedar-Louis and Horsefly Properties as announced in the Company's June 27, 2011 news release, and as updated in the Company's July 22, 2011 news release."