By Devika Patel
Knoxville, Tenn., Feb. 26 - Silvermex Resources Ltd. said it has arranged a C$5 million brokered private placement of units and a C$2 million non-brokered placement of units.
In the brokered deal, the company will sell 5 million units of one common share and a half-share warrant at C$1.00 apiece. Each whole warrant will be exercisable at C$1.25 for one year.
Versant Partners Inc. will lead a syndicate of agents which includes Canaccord Adams Inc. for this deal. The agents have a C$2.5 million greenshoe.
Settlement is expected March 20.
In the non-brokered deal, the company will sell 2 million units with the same terms as those in the brokered deal.
Proceeds will be used to fund work programs on Silvermex's Penasco Quemado, San Marcial, Lobos, El Rayo and Lety properties in Mexico and for general working capital purposes.
Silvermex is a resource exploration company based in Vancouver, B.C.
| Issuer: | Silvermex Resources Ltd.
|
| Issue: | Units of one common share and a half-share warrant
|
| Amount: | C$7 million
|
| Price: | C$1.00
|
| Warrants: | One half-share warrant per unit
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| Warrant expiration: | One year
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| Warrant strike price: | C$1.25
|
| Pricing date: | Feb. 26
|
| Settlement date: | March 20
|
| Stock symbol: | TSX Venture: SMR
|
| Stock price: | C$0.98 at close Feb. 25
|
|
|
| Brokered deal
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| Amount: | C$5 million
|
| Greenshoe: | C$2.5 million
|
| Units: | 5 million
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| Agent: | Versant Partners Inc. (lead), Canaccord Adams Inc.
|
|
|
| Non-brokered deal
|
| Amount: | C$2 million
|
| Units: | 2 million
|
| Agent: | Non-brokered
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