MINERALFIELDS GROUP TO ACQUIRE PORTION OF THE OFFERING CORPORATE UPDATE
PASS LAKE, ON, Nov. 25 /CNW/ - Jiminex Inc. (the "Company") (TSXV - JIM) today announced that, subject to regulatory approval, it intends to issue, on a brokered private placement basis, up to 10,000,000 flow through units (the "FT Units") at a price of $0.15 per FT Unit for gross proceeds of up to $1,500,000 and up to 4,166,667 non-flow through units (the "Units") at a price of $0.12 per Unit for gross proceeds of up to $500,000 (the "Offering"). Northern Securities Inc. ("Northern") has agreed to act as lead agent on a best efforts basis on the Offering.
Each FT Unit will consist of one flow-through common share of the Company ("FT Share") and one transferable common share purchase warrant (a "Warrant"). Each Unit will consist of one common share of the Company and a Warrant. Each Warrant may be exercised for one (1) common share of the Company at a price of $0.20 per share for a period of 24 months from the date of closing of the Offering.
MineralFields Group has already agreed to acquire up to 2,866,667 FT Units for gross proceeds of $430,000 (the "MineralFields Subscription") in the Offering. The Company intends to pay a cash finder's fee in the amount of 5% to Limited Market Dealer Inc. on the MineralFields Subscription. In addition, Limited Market Dealer Inc. shall receive Broker Warrants equal to 10% of the FT Units sold to the MineralFields Group. Each Broker Warrant will entitle the holder to acquire a Unit at a price of $0.12 per Unit for a period of 24 months from the date of closing.
As compensation for acting as lead agent on the Offering, Northern will receive 10% of the gross proceeds of the Offering as well as Broker Warrants equal to 10% of the Units and FT Units sold under the Offering excluding the FT Units acquired by MineralFields Group. The Broker Warrants issuable to Northern shall contain the same terms as those issuable to Limited Market Dealer Inc. Northern has also been granted an over-allotment option to be able to sell up to an additional $500,000 worth of FT Units if market conditions warrant.
James R.B. Parres, President and Chief Executive Officer of the Company, said: "We look forward to working with the MineralFields Group and Northern as we develop the Parres Property Project in the Province of Manitoba."
The proceeds from the flow through portion of the Offering will be used to finance the Company's ongoing exploration and development activities at the Parres Property Project located near the Lalor Lake Discovery in the Snow Lake mining area of Manitoba. See the Company's news release dated October 29, 2009 for further information regarding this project.
The remaining proceeds of the Offering will be used for the continued development of the Company's Northern Eagle Gold Property located in the Hemlo gold mining area, Ontario and the Misehkow River Gold Property located in the Pickle Lake gold mining region, Ontario and for general working capital. See the Company's news releases dated April 29 and October 27, 2009 for more information on these properties.
If the Offering is fully subscribed, but excluding the exercise of the over-allotment option, the Company will raise gross proceeds of $2,000,000 with up to an additional $2,833,333 available if all Warrants (excluding Broker Warrants) are exercised.
The Company also announces that Michael Stares has resigned as a director of Jiminex Inc. effective August 11, 2009 in order to pursue other business ventures. Mr. Stares has served as a director of the Company since April 2008. Over the past 16 months, Mr. Stares had played a key role in the Company's completion of a qualifying transaction.
The Board of Directors of Jiminex Inc. would like to thank Mr. Stares for his valuable contributions to the Company.
ABOUT JIMINEX INC.
The Company is a junior mining exploration company focused on gold exploration in Canada.
Subject to regulatory approval, the Company recently reached agreements to acquire a 100% interest in both the 14.8 square km Parres Property and the 47.8 square km Misehkow River Gold Property.
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 plans line cutting followed by this geophysical surveying to commence as soon as possible and to be followed by diamond drilling in early 2010.
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 pending. Ground surveys followed by diamond drilling are planned for the 2010 summer and fall field seasons.
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 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