PASS LAKE, ON, Dec. 11 /CNW/ - Further to its news release of November 25, 2009, Jiminex Inc. (the "Company") is very pleased to announce that it has conducted an early closing on a portion of the private placement financing (the "Offering") led by Northern Securities Inc. ("Northern").
The Company has issued to MineralFields Group, 3,200,000 flow through units at a price of $0.15 per unit (the "FT Units") for gross proceeds of $480,000, an increase from MineralField's originally announced commitment of $430,000.
Each FT Unit consists of one flow-through common share of the Company and one transferable common share purchase warrant (a "Warrant"). Each Warrant entitles the holder to subscribe for one common share of the Company at a price of $0.20 per share for two years from closing.
The Company intends to use the gross proceeds from the sale of the flow-through shares for Canadian Exploration Expenses ("CEE") within the meaning of the Income Tax Act (Canada) ("ITA"). The Company will use its best efforts to ensure that such CEE qualifies as "flow-through mining expenditures" for the purpose of the ITA. The CEE is also expected to qualify for the 15% Federal tax credit available to individual residents in Canada. The Company intends to renounce CEE in favour of purchasers of the flow-through shares as of December 31, 2009.
Limited Market Dealer Inc. ("LMD"), an affiliate of MineralFields Group, was paid a cash finder's fee of $21,500 and was also granted an option to acquire up to 286,666 finder's units ("Finder's Units") at a cost of $0.12 per Finder's Unit up to the close of business on December 9, 2011. Each Finder's Unit consists of one non-flow-through common share and a Warrant.
The MineralFields Group now holds approximately 19.92% of all issued and outstanding common shares of the Company.
All securities issued to MineralFields Group and LMD are subject to a four month hold period expiring April 11, 2010.
The balance of the Offering is expected to close towards the end of next week. If demand warrants, Northern may exercise an over-allotment option for up to an additional $500,000 of FT units. For further information regarding the Offering, please see the Company's November 25, 2009 news release.
TSXV ACCEPTS MISEHKOW AND PARRRES PROPERTY ACQUISITIONS FOR FILING
TSXV has notified the Company that it has accepted for filing the Misehkow and Parres property acquisitions announced on October 27 and October 29, 2009 respectively. The Company has acquired a 100% interest in both the 14.8 square km Parres Property and the 47.8 square km Misehkow River Gold Property.
The Company will issue 100,000 common shares and pay $54,000 for the Misehkow Property. Two of the vendors, Stephen Stares and Michael Stares, will retain a 2% net smelter royalty over any minerals produced from certain claims on the property, 1% of which may be purchased by the Company at any time after production commences for $1,000,000. The third vendor, James Parres, will retain a 1% net smelter royalty over any minerals produced from certain claims on the property, 0.5% of which may be purchased by the Company at any time after production commences for $500,000.
The Misehkow River Gold Property is located in the Pickle Lake gold area of Ontario. This property represents a more regional exploration project in that approximately 20 km of iron formation having a potential to host gold deposits is situated on the mining claims. There are several historical significant gold-bearing drill intersections associated with the iron formation, a common host rock for the nearby Pickle Lake and the Musselwhite gold mining camps. The Company has recently had a VTEM airborne geophysical survey flown over the property by Geotech Ltd. and results are currently being interpreted. Ground surveys followed by diamond drilling are planned for the 2010 summer and fall field seasons.
The Company will issue 100,000 common shares and pay $6,000 for the Parres Property. The vendor, James Parres, will retain a 2% net smelter royalty (the "NSR") over any minerals produced from the property, 1% of which may be purchased by the Company at any time after production commences for $1,000,000.
The Parres Property is located in the Snow Lake mining camp of Manitoba near to the recent major copper-zinc-gold-silver and gold discovery at Lalor Lake by HudBay Minerals Inc. The Property covers 4 km of favorable mine geology between former producers, the Stall Lake-Rod Mine and the Osborne Mine. The Company plans to use a deep-penetrating electro-magnetic geophysical system to attempt to detect any conductive copper-zinc deposits which may underlie the property. The Company has begun line cutting to be followed by this geophysical surveying to commence as soon as possible and to be followed by diamond drilling in early 2010.
The Company is also earning a 50% interest from Beaufield Resources Inc. in the 37 square km Northern Eagle gold property. This property, straddling Trans-Canada Highway 17, is located 15 km west of the 21 million ounce Hemlo gold deposit currently being mined by Barrick Gold Corporation in Northwestern Ontario. The property represents one of the best target areas in the region for the potential discovery of another Hemlo-style gold deposit. Geological compilation and digital conversion of historical data to a geological computer model is almost complete. Deep-penetrating Titan 24 IP and magneto-telluric geophysical surveying by Quantec Geoscience is planned in the near future to be followed by deep diamond drilling in 2010.
Allan J. Willy, P. Eng., VP Exploration & Director of Jiminex Inc. is the qualified person responsible for the geotechnical information contained in this press release.
ABOUT MINERALFIELDS, PATHWAY AND FIRST CANADIAN SECURITIES
MineralFields Group (a division of Pathway Asset Management), based in Toronto, Vancouver, Montreal and Calgary is a mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada as well as hard-dollar resource limited partnerships to investors throughout the world. 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 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.
This press release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in the Company's periodic reports including the annual report or in the filings made by the Company from time to time with securities regulations. The Company undertakes no obligation to publicly release the result of any revision of these forward-looking statements to reflect events or circumstances after the date they are made or to reflect the occurrence of unanticipated event.
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 JIMINEX INC.
For further information: For further information: James R.B. Parres, President and Chief Executive Officer of Jiminex Inc., Phone: (807) 977-1679, Website: http://www.jiminex.com