TORONTO, Oct. 20 /CNW/ - Geoinformatics Exploration Inc. (TSX-V: GXL)
("Geoinformatics" or the "Company") is pleased to announce that it has
completed the private placement with Geologic Resource Partners LLC ("GRP")
raising gross proceeds of Cdn$29,328,000 by issuing 586,560,000 common shares
at a price of $0.05 per common share. The proceeds from this financing are
being used to (i) repay the convertible loan facility in the amount of
US$20 million held by GRP, (ii) repay US$2.5 million of advances under the
bridge loan made by GRP, and (iii) for working capital purposes.
The private placement was approved by the Company's shareholders at the
Company's special meeting of shareholders held in Vancouver, British Columbia
on October 15, 2008. Minority shareholders (which excluded GRP) voted 97% in
favour of the transaction. Shareholders also overwhelmingly approved a special
resolution to consolidate the issued and outstanding common shares of the
Company on the basis of one new common share for each ten existing common
"Geologic has been a long-term investor and supporter of Geoinformatics
and continues to see the tremendous value and opportunities within the
Company," commented John Kanellitsas, Chairman of Geoinformatics and Chief
Operating Officer of GRP. "We now look forward to working together to develop
and implement a cohesive strategy that will increase value for all
shareholders. In addition, the Board would like to thank and extend its
congratulations to management, both for their continued focus on proving the
potential of the exploration properties and on the successful completion of
this transaction, especially given the turbulent economic environment."
GRP is the investment manager for a family of Geologic Resource funds
(collectively "GRF"). In addition, Geoinformatics has issued 31,977,209 common
shares to GRF in satisfaction of the interest on the convertible loan facility
for the period of January 1, 2008 to October 16, 2008.
Following the private placement and satisfaction of the convertible
interest, Geoinformatics has 757.1 million common shares issued and
outstanding and GRF holds 642.6 million common shares of Geoinformatics,
representing approximately 84.9% of the common shares outstanding.
Geoinformatics is a North American focused minerals exploration company
utilizing innovative and proprietary technology to define and explore
grass-roots projects. The Company's successes include its gold-copper Whistler
Project in Alaska which hosts a NI 43-101 compliant Indicated resource of
30 million tonnes grading 0.87 g/t gold, 2.46 g/t silver and 0.24% copper and
an Inferred resource of 134 million tonnes grading 0.64 g/t gold, 2.18 g/t
silver and 0.20% copper. In addition, there is considerable mineralization in
the Whistler Zone that has been identified by drilling and reported in the
43-101 resource technical report filed on SEDAR (www.sedar.com), but has not
yet been categorized as a mineral resource.
In addition, Geoinformatics is exploring several advanced projects
located in Sinaloa and Sonora (Mexico), the Cortez Trend region of Nevada, and
British Columbia. Geoinformatics also has an extensive portfolio of other
direct and indirect property interests, joint ventures, and royalties covering
a wide range of minerals in Mexico, Australia, New Zealand and North America.
This news release includes certain forward-looking statements concerning
the future performance of Geoinformatics' business, operations and financial
performance and condition, as well as management's objectives, strategies,
beliefs and intentions. Forward-looking statements are frequently identified
by such words as "may", "will", "plan", "expect", "anticipate", "estimate",
"intend" and similar words referring to future events and results.
Forward-looking statements are based on the current opinions and expectations
of management. All forward-looking information is inherently uncertain and
subject to a variety of assumptions, risks and uncertainties, including the
speculative nature of mineral exploration and development, fluctuating
commodity prices, competitive risks and the availability of financing, as
described in more detail in Geoinformatics' securities filings available at
www.sedar.com. Actual events or results may differ materially from those
projected in the forward-looking statements and the reader is cautioned
against placing undue reliance thereon. We assume no obligation to revise or
update these forward-looking statements except as required by law.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information:
For further information: Ms. Petra Decher, President & CFO, Tel: (416)
861-1300 x225, Email: email@example.com, Geoinformatics Exploration Inc.,
80 Richmond St West, Suite 303, Toronto, Ontario, M5H 2A4; Mr. Darren Holden,
Chief Operating Officer, Tel: (604) 605-3073 x105, Email:
firstname.lastname@example.org, Geoinformatics Exploration Inc., 700 West Pender
Street, Suite 304, Vancouver, British Columbia, V6C 1G8; www.geoinformex.com