KELOWNA, BC, Dec. 23 /CNW/ - Metalex Ventures Ltd. (TSXV : MTX) (the "Company") is pleased to announce, further to its
new release of December 2, 2010, the closing of its brokered private
placement (the "Offering") by a syndicate of agents led by GMP
Securities L.P. and including Pope & Company Ltd. (the "Agents"). A
total of C$7,304,750 was raised through the issuance of both
Flow-Through and Non Flow-Through units.
The Company raised C$6,029,700 through the issuance of 6,699,667
"flow-through" units (Flow-Through Unit") at a price of C$0.90 per
Flow-Through Unit. Each Flow-Through Unit consists of one "common
share" of the Corporation (a "Common Share") issued on a "flow-through"
basis (such Common Share, a "Flow-Through Share") and one half of one
Common Share purchase warrant (each whole warrant, a "Flow-Through
Warrant"). Each Flow-Through Warrant will entitle the holder thereof to
acquire one Common Share at a price of C$1.00 for a period of 24 months
following the closing of the Offering. The proceeds from the issuance
of the Flow-Through Units shall be used to fund exploration
expenditures at the Company's Canadian mineral projects and will
qualify as Canadian exploration expenses (as defined in the Income Tax
Act) that will be renounced to the investors.
The Company raised C$1,275,050 through the issuance of 1,821,500 units
(the "Non Flow-Through Units") at a price of C$0.70 per Non
Flow-Through Unit. Each Non Flow-Through Unit consists of one Common
Share and one half of one Common Share purchase warrant (each whole
warrant, a "Warrant"). Each Warrant will entitle the holder thereof to
acquire one additional Common Share at a price of C$0.90 for a period
of 24 months following the closing of the Offering. The proceeds from
the issuance of the Non Flow-Through Units shall be used for
exploration and development of the Company's overseas mineral
exploration projects as well as for administrative and working capital
Dr. Charles Fipke, the Chairman of the Company, subscribed for 1,666,667
In connection with the Offering, the Agents received a cash commission
equal to 6% of the gross proceeds of the Offering and also received
compensation options exercisable by the Agents to acquire 852,117 Non
Flow-Through Units at a price of $0.70 per Unit for a period for a
period of 24 months following the closing of the Offering.
All securities issued pursuant to the Offering, together with any
underlying securities, are subject to a four month hold period expiring
April 24, 2011.
The Company is pleased to have been fully subscribed for the financing
and looks forward to the results of the upcoming work programs.
Neither the 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 Metalex Ventures Ltd.
For further information: For further information:
Chad Ulansky, President & CEO