Geologix Closes $1,105,000 Unit Offering
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jul 25, 2016) - Geologix Explorations Inc. (TSX VENTURE:GIX)(FRANKFURT:GF6)(BERLIN:GF6)(STUT:GF6)(MUN:GF6) ("Geologix" or "the Company") is pleased to announce the successful closing of its non-brokered private placement of 17,000,000 units at $0.065 per unit for gross proceeds of $1,105,000 (the "Offering").
Each unit issued under the Offering consisted of one common share and one-half of one non-transferable share purchase warrant, with each whole warrant entitling the holder the right to purchase one additional common share for a period of 36 months from closing at a price of $0.10. All securities issued and issuable pursuant to the Offering are subject to resale restrictions until November 23, 2016.
Proceeds of the Offering are intended to be used for the continued advancement of the Tepal Gold/Copper Project and for general corporate purposes.
Finder's fees of 7% were paid to Mackie Research Capital Corp. and Haywood Securities Inc. in respect of approximately 5.4 million units.
In connection with the Offering, four Company directors completed the early conversion of their convertible, unsecured, 10%, three-year promissory notes totalling $300,000 into 8,333,333 common shares pursuant to the conversion price at the time the notes were issued of $0.036 per share.
On behalf of the Board of Directors,
Kiran Patankar, President and Chief Executive Officer
About Geologix Explorations Inc.
Geologix is a mineral exploration and development company focused on acquiring, exploring, and developing mineral resource opportunities with the potential to host profitable mining operations. The Company's primary focus is the Tepal Gold/Copper Project in Michoacán state, Mexico. On March 19, 2013, the Company announced a Prefeasibility Study for the Project that indicated an 11.5 year mine life with payable production of 1.12 M oz. gold and 503 M lbs. copper, resulting in a post-tax NPV of $421 million at a 5% discount rate. The positive results of this study have led the Company to continue to work towards both completing a Feasibility Study for the Project and arranging the necessary financing to advance the Project to production.
This Press Release may contain statements which constitute 'forward-looking, including statements regarding the plans, intentions, beliefs and current expectations of the Company, its directors, or its officers with respect to the future business activities and operating performance of the Company. The words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions, as they relate to the Company, or its management, are intended to identify such forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future business activities or performance and involve risks and uncertainties, and that the Company's future business activities may differ materially from those in the forward-looking statements as a result of various factors. Such risks, uncertainties and factors are described in the periodic filings with the Canadian securities regulatory authorities, including the Company's Annual Information Form and quarterly and annual Management's Discussion & Analysis, which may be viewed on SEDAR at www.sedar.com. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements.
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
Contact
Geologix Explorations Inc.
Kiran Patankar
President and Chief Executive Officer
Tel: 604-694-1742
Email: ir@geologix.ca
Website: www.geologix.ca