(TheNewswire)
Vancouver, Canada / TheNewswire / July 16, 2018 - Canamex Gold
Corp. (the “Company” or “Canamex”) (CSE: CSQ) on May 15, 2018, launched a non-brokered private placement to accredited
investors, of GOLDUSA (“GOLDUSA” or “Token” ticker symbol “GOLD”) Ethereum ERC20 Crypto Tokens via a Security Token Offering
(“STO”).
The Company has issued various unlisted Warrants to subscribe to equity shares in the Company (the “Warrants”),
to various persons and entities (the “Warrant Holders”) as recorded on the books and record of the Company, summarized at Schedule
A attached. In conjunction with the STO, which is still open to subscription, the Company will offer to all Warrant Holders,
conversion of Warrants to discounted GOLDUSA Tokens (the “Offer”).
Warrant Conversion Offer
The Company will offer all Warrant Holders, conversion of Warrants to discounted GOLDUSA Tokens. In
consideration for subscribing to the GOLDUSA tokens at a substantial discount, such Warrants will be cancelled by the Company, as
full settlement for value received from the discounted offer.
The Company has authorized the issuance of such number of GOLDUSA Tokens in the
capital of the Company, as fully-paid and non-assessable GOLDUSA Tokens of the Company. The cash
consideration to be received by the Company, for each Warrant converted into GOLDUSA Tokens, is $US 0.03 (or $CAD 0.04) to convert
each Warrant into 0.01 GOLDUSA Token. This is equivalent to $US 600 per oz Au, which is more than 50% value discount, based on the
current spot gold price. The Warrant Conversion Offer will be open for 30 calendar days, from the date of the offer to
Warrant Holders.
Warrant Conversion - Example
An example Warrant Holder has 100,000 Warrants in the Company and elects to convert all of them to GOLDUSA
security tokens, under the terms of the Offer.
The 100,000 warrants would convert at $US 0.03 for each 0.01 GOLDUSA token, for a total of $US 3,000 (or $CAD
0.04 each for $CAD 4,000 total) consideration paid to the company. In return for the discount value received, the 100,000 warrants
would be cancelled, and the Warrant Holder is issued 100,000 x 0.01 = 1,000 GOLDUSA security tokens. Each token is 1/200 oz Au, so
1,000 tokens = 1000/200 = 5 oz gold.
Effectively, the warrant holder spends $US 3,000 for 5 x $US 1250 = $US 6,250 worth of gold at
approximate current spot price, or more than a 50% discount to the spot gold price. The value received by the Warrant
Holder in this case, is $US 3,250 ($US 6,250 - $US 3,000) compared to buying gold at spot price, or $US 0.0325 per warrant, or
about $CAD 0.045 for each warrant. This compares to the current value of the warrants, which is zero, as they are all out of the
money at the current market share price of the Company.
For the warrant holder to realise $CAD 0.045 in value, the Company market share price would need to be trading
around $CAD 0.25 in the market, and the warrant holder then needs to subscribe $CAD 20,000 at the strike price of $CAD 0.20, to
exercise and realise that value. Alternatively, the Warrant Holder can convert under this Offer now, for $US 3,000 ($CAD 4,000) to
get the similar value received, which is a saving of $CAD 16,000 to the warrant holder, in this example.
Further general details GOLDUSA security tokens:
Considerations and Risks
An investment in the GOLDUSA Tokens offered via this STO, should be considered speculative due to various
factors, including the nature of the industry in which the Company operates. Risk factors relating to the Company are discussed in
certain of public disclosures of the Company which are available for review on the Company’s SEDAR profile at www.sedar.com Risk factors should be carefully reviewed and considered by an investor before a decision is made
to invest in the GOLDUSA Tokens. Relevant considerations and risks associated with the STO are comprehensively detailed in the
whitepaper here: https://canamexgold.com
/goldusa/
About the Company
Canamex Gold Corp. is a public listed company registered in British Columbia, Canada, trading on the
Canadian Securities Exchange (CSE), and is engaged in fast-tracking toward development of the Bruner Gold Development Project in
the prolific gold jurisdiction of Nye County, Nevada. The region is home to several producing and past-producing mines along the
Walker Lane Trend. Canamex completed a positive Preliminary Economic Assessment (PEA) on the Bruner Gold Development
Project in 2016. Based on additional drilling conducted on the property, the company completed an updated PEA in 2018, which
increased the resources and improved the economics of the project. Canamex is now moving the Bruner Gold Project forward into
permitting and development on the strength of this positive updated PEA. The second asset is the Silverton Gold property, a gold
exploration project, in Nevada, which has geological similarities to the Long Canyon gold deposit in Nevada, being mined by Newmont
Mining. The Company has signed Agreements with Harmonychain AS, for Ethereum Blockchain Smart Contract Security Tokens for Gold and
Silver, as an alternative means of raising capital, potentially without equity dilution. The Agreements secure the exclusive rights
to various Ethereum Token domain names, ticker codes, and associated smart contracts, for Gold and Silver. The rights
also extend to patents pending and trademarks associated with these security token financing models, including ChainDelivery™
royalty stream delivery queuing systems. Further information is available at https://canamexgold.com
Greg Hahn (CPG#7122), President & COO of the Company is the qualified person who has reviewed and
approved all technical disclosures in this release.
ON BEHALF OF THE BOARD
David Vincent
Chief Executive Officer and Director
david.vincent@canamexgold.com
Mike Stark
Chairman of the Board
Contact: (604) 833-4278
mike.stark@canamexgold.com
The Canadian Securities Exchange accepts no responsibility for the adequacy or
accuracy of this release .
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