VANCOUVER, BC, Oct. 6, 2022 /CNW/ – NGEx Minerals Ltd. (TSXV:NGEX) (“NGEx Minerals” “NGEx” or the “Company”) is pleased to announce that due to strong demand it has elected to increase the previously announced non-brokered private placement to an aggregate of up to 15,000,000 common shares of the Company (the “Common Shares“) at a price of C$2.00 per Common Share for gross proceeds of up to C$30.0 million (the “Private Placement“). PDF Version
The Company may pay a 5.0% finder’s fee in cash or Common Shares on all or a portion of the Private Placement.
The Common Shares will be offered by way of prospectus exemptions in Canada and the Common Shares sold in the Private Placement will be subject to a hold period of four months plus one day.
Completion of the Private Placement will be subject to regulatory approval, including the approval of the TSX Venture Exchange and certain other customary conditions including, but not limited to, execution of subscription agreements between the Company and the subscribers.
Net proceeds of the Private Placement will be used towards furthering exploration programs in Chile and Argentinathe repayment of amounts drawn against a US$3 million credit facility that matures in September 2023if any, as well as for general corporate and working capital purposes.
The issuance of Common Shares to insiders constitutes a “related party transaction”, as defined under Multilateral Instrument 61-101 (“MI 61-101“). The transactions will be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of any Common Shares issued to, nor the consideration paid, by such persons would exceed 25% of the Company’s market capitalization.
This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein in the US, or in any jurisdiction in which such an offer or sale would be unlawful. The securities described herein have not been and will not be registered under the US Securities Act of 1933, as amended, or any US state securities laws and may not be offered or sold in the US or to the account or benefit of a US person or a person in the US …