Non-brokered deal raises proceeds for working capital and exploration
By Devika Patel
Knoxville, Tenn., May 4 - Guerrero Exploration Inc. said it has negotiated a C$2 million non-brokered private placement of units.
The company will sell 8 million units at C$0.25 apiece. Each unit consists of one common share and one warrant.
Each warrant is exercisable at C$0.50 for 18 months. The strike price is an 85.19% premium to the May 3 closing share price of C$0.27.
Proceeds will be used for general working capital and exploration on the company's mining properties.
"The positive results announced by Newstrike Capital Inc. in their press release, dated April 20, of 230.95 meters of 7.5 G/T of gold on their Ana Paula Project, which is located 69 kilometers to the east of Guerrero's Cerro Azul Property along the Southern Mexico Gold Belt, are very encouraging for Guerrero," president and chief executive officer David Stadnyk said in a press release.
"Upon completion of this offering, Guerrero will be able to advance its 2011 capital commitments and continue to accelerate, with its joint venture partner, the Cerro Azul and Chapolota exploration work and drill programs."
Guerrero is a copper, gold and silver explorer in Vancouver, B.C.
| Issuer: | Guerrero Exploration Inc.
|
| Issue: | Units of one common share and one warrant
|
| Amount: | C$2 million
|
| Units: | 8 million
|
| Price: | C$0.25
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$0.50
|
| Agent: | Non-brokered
|
| Pricing date: | May 4
|
| Stock symbol: | TSX Venture: GEX
|
| Stock price: | C$0.27 at close May 3
|
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