(Vancouver, British Columbia), April 19, 2017 – Canamex Resources Corp. (TSX‑V: CSQ) (FSE: CX6) announces that, further to its news release of April 10, 2017, it wishes to increase the previously announced private placement of units from $2,000,000 to $2,500,000 (the “Financing”), subject to acceptance by the TSX Venture Exchange (“TSX-V”). These funds will be raised by the Company issuing up to 20,833,334 units (the “Units”), at a price of $0.12 per Unit, each Unit consisting of one common share and one share purchase warrant, each warrant entitling the holder thereof to purchase one additional common share, exercisable for a period of five years from the date of issuance at a price of $0.20 per share.
The Company may pay finders’ fees in connection with the Financing in accordance with the rules and policies of the TSX-V.
Proceeds will be used to acquire the remaining 30% interest of the Patriot Gold Corp. (“Patriot”) interest in the Bruner Gold Project in Nevada for US$1,000,000 (approximately $1.34M in Canadian dollars); and for general working capital. The Company and Patriot jointly announced on March 20, 2017 the terms of this consolidation of the ownership of the Bruner Gold Project. Canamex will receive 100% ownership of the Bruner Gold Project by paying consideration to Patriot of US$1,000,000.
In addition, in accordance with an agreement the Company has with Hecla Canada Ltd. (“Hecla”) (refer to CSQ News Release dated November 19, 2012), Hecla holds a pre-emptive right so long as it holds more than 10% of Canamex’s outstanding shares (on an undiluted basis). In this regard, Hecla has the right (but not the obligation) to participate in equity offerings of Canamex in order to maintain its pro-rata equity interest in Canamex.
ON BEHALF OF THE BOARD
SIGNED: “Mark Billings”
Mark Billings, Chairman and CEO
Contact: (514) 296-1641
The securities referred to in this news release have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements.
This news release does not constitute an offer for sale of securities for sale, nor a solicitation for offers to buy any securities. Any public offering of securities in the United States must be made by means of a prospectus containing detailed information about the company and management, as well as financial statements.
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.