Canamex Resources (CSQ-V) closes $2,160,000 financing with Gold Resource and Insiders priced at a then premium to market
Feb 28, 2014 - NR
Canamex Resources Corp., further to its news release dated Feb. 7, 2014, has closed its equity financing, pursuant to which Gold Resource Corp. acquired 22,222,222 common shares of the company and insiders acquired an additional 1,777,778 common shares, at a price of nine cents per share which was then a 12.5-per-cent premium to the closing price on the day agreement was reached, and a premium of 13.75 per cent to the volume-weighted average price over the prior 20 trading days. The aggregate purchase price for the 24 million shares was $2.16-million. No warrants were issued and no fees were paid in connection with this financing. Proceeds will be used for exploration and development of the company's Bruner gold project located in Nye county, Nevada, and for general working capital. The shares are subject to a hold period under applicable Canadian securities laws expiring on June 28, 2014, and will be subject to such further restrictions on resale as may apply under applicable foreign securities laws.
GRC has the right to appoint one representative to the board of directors of Canamex, provided that GRC holds more than 10 per cent of the issued and outstanding shares of Canamex.
Canamex chief executive officer Robert Kramer commented: "We are delighted to welcome GRC as a strategic investor. GRC management has a wealth of experience in the gold mining sector, and we believe they fully understand and support our vision for our flagship Bruner gold project." |
