Xmet Announces Non-Brokered Private Placement of up to $1.5 Million in Hard Dollar Financing

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES./

TORONTO, Feb. 4 /CNW Telbec/ - Xmet Inc. (TSXV-XME) ("Xmet") is pleased to announce a proposed non-brokered private placement offering of up to 6 million units (the "Units") at a price of $0.25 per Unit, for aggregate gross proceeds of $1.5 million (the "Offering").  Each Unit will consist of one common share (a "Common Share") and one half of a common share purchase warrant (each whole purchase warrant, a "Warrant"). Each Warrant will entitle the holder to purchase one additional common share at a price of $0.35 for a period of one year following the closing of the Offering. 

The proceeds of the Offering will be used by Xmet for potential acquisitions and for general working capital purposes.

At the closing of the Offering, any agents or finders will receive compensation paid in cash equal to 7% of the gross proceeds raised by them under the Offering and will receive non-transferable compensation warrants exercisable at $0.35 per compensation warrant for a period of one (1) year from the date of closing of the Offering to acquire such number of Units of Xmet as is equal to 7% of the aggregate number of Units attributable to them.

The Offering is anticipated to close on or about February 28, 2011 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange. All securities issued pursuant to the Offering will be subject to a four month hold period from the date of closing of the Offering.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

About Xmet Inc.

Xmet, through its wholly-owned subsidiary Duquesne-Ottoman Mines Inc. ("Duquesne-Ottoman Mines"), carries out gold and resource exploration and development. Pursuant to the terms of a mining option agreement between Duquesne-Ottoman Mines and Duparquet Assets Ltd., Duquesne-Ottoman Mines can earn an option to purchase 75% of the common shares in the capital of Duparquet Assets Ltd, which legally and beneficially owns 20 claims (commonly referred to as Duquesne West) and 40 claims (commonly referred to as Ottoman) covering an area of 928.6 hectares located approximately 30 kilometres north of the city of Rouyn-Noranda and 10 kilometres east of the village of Duparquet within the townships of Duparquet and Destor in the Province of Quebec.

Xmet is the operator and can earn a 75% interest in the Duquesne-Ottoman property from Globex Mining Enterprises Inc. (TSX:GMX) by investing a total of $10 million in exploration on the property and making cash payments totalling CDN $7.76 million over four years.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE XMET INC.

For further information:

Xmet Inc.
Charles Beaudry, President and COO
Phone (416) 644-6588
E-mail: cbeaudry@xmet.ca
or
Tim Gallagher, Director
Phone: (416) 925-0090
E-mail: tim@inflectioncapital.ca

Renmark Financial Communications Inc.
Maurice Dagenais: mdagenais@renmarkfinancial.com
Christine Stewart: cstewart@renmarkfinancial.com
Tel.: (514) 939-3989 or (416) 644-2020
www.renmarkfinancial.com 

Profil de l'entreprise

XMET INC.

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