Adex Announces the Completion of a Private Placement of Units Consisting of One Flow-Through Common Share and One Half of One Co
31 December 2009 - 8:25AM
Marketwired
Adex Mining Inc. ("Adex" or the "Company") (TSX VENTURE: ADE) is
pleased to announce that it has raised $1,009,040 through a private
placement completed today of 8,408,665 units (the "Units") at a
price of $0.12 per Unit (the "Offering"). Each Unit is comprised of
one flow-through common share of Adex (a "Flow-Through Share")
within the meaning of the Income Tax Act (Canada) and one-half of
one common share purchase warrant (a "Warrant"). Each whole Warrant
entitles the holder thereof to acquire one common share of Adex at
a price of $0.175 at any time prior to 5:00 p.m. (Toronto time) on
the first anniversary of the date of the closing of the Offering
and at a price of $0.20 at any time following 5:00 p.m. (Toronto
time) on the first anniversary of the date of the closing of the
Offering and prior to 5:00 p.m. (Toronto time) on the second
anniversary of the date of the closing of the Offering at which
time any unexercised Warrants will expire.
On the closing of the Offering, First Canadian Securities, a
division of Limited Market Dealer Inc., ("First Canadian") was paid
a cash finder's fee of $19,000 representing 2% of the gross
proceeds of the Offering raised through the subscriptions by
members of the MineralFields Group of Companies for an aggregate of
$950,000 of Units. In addition, First Canadian was issued
irrevocable and non-transferable finder's fee options (the "First
Canadian Finder's Fee Options") to purchase 554,166 finder's fee
units (the "Finder's Fee Units") (equal to 7% of the 7,916,665
Units sold pursuant to the Offering to members of the MineralFields
Group of Companies) at a price of $0.12 per Finder's Fee Unit at
any time prior to 5:00 p.m. (Toronto time) on the second
anniversary of the date of the closing of the Offering. Each
Finder's Fee Unit will consist of one common share and one-half of
one Warrant. Kingsdale Capital Markets Inc. ("Kingsdale") was paid
a cash finder's fee of $600 representing 2% of the gross proceeds
of the Offering raised through subscriptions arranged for by
Kingsdale. Kingsdale was also issued irrevocable and
non-transferable finder's fee options (the "Kingsdale Finder's Fee
Options") to purchase 262,499 finder's fee units (the "Finder's Fee
Units") (equal to 3% of the 7,916,665 Units sold pursuant to the
Offering to members of the MineralFields Group of Companies and 10%
of the 250,000 Units sold to subscribers arranged for by
Kingsdale). The Kingsdale Finder's Fee Options have terms identical
to those of the First Canadian Finder's Fee Options
Adex will use the gross proceeds from the Offering to incur
exploration expenditures which are eligible as Canadian Exploration
Expenses under the Income Tax Act (Canada). The exploration
expenditures will be made to advance development of the Company's
wholly-owned Mount Pleasant Mine Property located in New Brunswick,
Canada.
"We are very pleased to be commencing a relationship with
MineralFields Group", said Errol Farr, the President and Chief
Executive Officer of Adex. "This is an important milestone in the
growth of Adex and we look forward to working with MineralFields
Group as we advance the development of our wholly-owned Mount
Pleasant Mine Property located in New Brunswick, Canada."
All securities issued pursuant to the Offering (and any
underlying securities) will be subject to applicable statutory and
regulatory hold periods expiring on May 1, 2010.
ABOUT ADEX
Adex Mining Inc. is a Canadian junior mining company with an
experienced management team. The Company is focused on developing
its flagship Mount Pleasant Mine property, a multi-mineral project
that is host to promising tungsten-molybdenum and
tin-indium-zinc-copper mineralization. Located in Charlotte County,
New Brunswick, the Mount Pleasant Mine property is situated
approximately 80 kilometres south of Fredericton, the provincial
capital, and is 65 kilometres from the United States border. The
common shares of Adex trade on the TSX Venture Exchange under the
stock symbol "ADE." Technical and business information regarding
Adex's Mount Pleasant property is available on SEDAR at
www.sedar.com and the Company's website at www.adexmining.com.
ABOUT MINERALFIELDS, PATHWAY AND FIRST CANADIAN SECURITIES
MineralFields Group (a division of Pathway Asset Management),
based in Toronto and Vancouver, is a mining fund with significant
assets under administration that offers its tax-advantaged super
flow-through limited partnerships to investors throughout Canada as
well as hard-dollar resource limited partnerships to investors
throughout the world. Pathway Asset Management also specializes in
the manufacturing and distribution of structured products and
mutual funds (including the Pathway Multi Series Funds Inc.
corporate-class mutual fund series). Information about
MineralFields Group is available at www.mineralfields.com. First
Canadian Securities is active in leading resource financings (both
flow-through and hard dollar PIPE financings) on competitive,
effective and service-friendly terms, and offers investment
banking, mergers and acquisitions, and mining industry consulting
services to resource companies. MineralFields and Pathway have
financed several hundred mining and oil and gas exploration
companies to date through First Canadian Securities.
No securities commission or regulatory authority has approved or
disapproved the contents of this press release.
FORWARD-LOOKING STATEMENTS
Certain statements in this press release may constitute
"forward-looking" statements which involve known and unknown risks,
uncertainties and other factors which may cause actual results,
performance or achievements of Adex, its subsidiary or the industry
in which they operate to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements. When used in this press release, the
words "estimate", "believe", "anticipate", "intend", "expect",
"plan", "may", "should", "will", the negative thereof or other
variations thereon or comparable terminology are intended to
identify forward-looking statements. Such statements reflect the
current expectations of the management of Adex with respect to
future events based on currently available information and are
subject to risks and uncertainties that could cause actual results,
performance or achievements to differ materially from those
expressed or implied by those forward-looking statements. These
risks and uncertainties are detailed from time to time, including,
without limitation, under the heading "Risk Factors", in reports
filed by Adex with the Alberta, British Columbia and Ontario
Securities Commissions which are available at www.sedar.com and to
which readers of this press release are referred for additional
information concerning Adex, its prospects and the risks and
uncertainties relating to Adex and its prospects. New risk factors
may arise from time to time and it is not possible for management
to predict all of those risk factors or the extent to which any
factor or combination of factors may cause actual results,
performance and achievements of Adex to be materially different
from those contained in forward-looking statements. Although the
forward-looking statements contained in this press release are
based upon what management believes to be reasonable assumptions,
Adex cannot assure investors that actual results will be consistent
with these forward-looking statements. Given these risks and
uncertainties, investors should not place undue reliance on
forward-looking statements as a prediction of actual results.
The forward-looking information contained in this press release
is current only as of the date of the press release. Adex does not
undertake or assume any obligation to release publicly any
revisions to these forward-looking statements to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events, except as required by law.
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.
Contacts: Adex Mining Inc. J. Errol Farr, CMA President, Chief
Executive Officer and Director 1-866-508-2339 (ADEX)
investorrelations@adexmining.com www.adexmining.com
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