VANCOUVER,
Oct. 22, 2012 /CNW/ - First Mexican
Gold Corp. (the `Company` or `FMG`) (TSX-V: FMG, Frankfurt: 21M) has entered into a letter of
engagement with Euro Pacific Canada Inc. (the Agent), pursuant to
which the Agent has agreed to place, on a commercially reasonable
best efforts basis, up to ten million units of the company at a
price of $0.10 per unit for gross
proceeds of up to $1.0 million
dollars. Each unit consists of one common share plus
one-half of one common share purchase warrant, with each whole
purchase warrant exercisable into a common share at a price of
$0.14 for a period of 24 months from
closing.
The agents will receive a cash commission of 8
per cent of the gross proceeds raised, as well as 8 percent broker
warrants.
The company intends to use the net proceeds of
the offering to fund a 3000 meter drill program testing the Diana
zone mineralization over an 900 meter strike length as well as the
Ann zone over a 400 meter area plus one hole planned to intercept
an area of high chargeability on the Linda zone and for working
capital and other general corporate purposes.
First Mexican Gold Corp is an active explorer
for precious metals in Mexico and
has now completed the acquisition of a 100% interest in the
Guadalupe property package. The Company now holds extensive
exploration rights in this high potential exploration area that is
now attracting attention from major mining companies.
About Euro Pacific Canada Inc.
Euro Pacific Canada is an IIROC registered
brokerage headquartered in Toronto, with offices in Montreal and Vancouver, specializing in foreign markets,
precious and strategic metals investing. The firm offers an
integrated platform of investment banking, institutional sales and
trading, research, and private client services following the advice
laid out by Euro Pacific Capital's Chief Global Strategist Peter
Schiff, an internationally recognized and market strategist.
Additional information is available at www.europac.ca.
For more information on this offering contact
Tarek Mnaimne at Euro Pacific Canada at 416-649-4271 x308.
On behalf of the Board of Directors,
Jim Voisin
President & CEO
First Mexican Gold Corp.
519 699 5352
We seek safe harbour.
This news release includes certain
forward-looking statements or information. All statements
other than statements of historical fact included in this release,
including, without limitation, statements relating to the potential
mineralization and geological merits of the Guadalupe property
and other future plans, objectives or expectations of the Company
are forward-looking statements that involve various risks and
uncertainties. There can be no assurance that such statements
will prove to be accurate and actual results and future events
could differ materially from those anticipated in such
statements. Important factors that could cause actual results
to differ materially from the Company's plans or expectations
include risks relating to the actual results of current exploration
activities, fluctuating gold prices, possibility of equipment
breakdowns and delays, exploration cost overruns, availability of
capital and financing, general economic, market or business
conditions, regulatory changes, timeliness of government or
regulatory approvals and other risks detailed herein and from time
to time in the filings made by the Company with securities
regulators. The Company expressly disclaims any intention or
obligation to update or revise any forward-looking statements
whether as a result of new information, future events or otherwise
except as otherwise required by applicable securities
legislation.
SOURCE First Mexican Gold Corp.
