TSX-V Trading Symbol: FMG
VANCOUVER, Sept. 8, 2014 /CNW/ - First Mexican Gold Corp.
(the "Company" or "FMG") (TSX-V: FMG), would like to report that a
number of developments have occurred and presently underway as
outlined below.
The Company is pleased to announce it is entering into
agreements with numerous creditors pursuant to which it will issue
5,580,705 shares, at a deemed price of $0.065 per share, to settle indebtedness of
$362,745.83. Of these shares to
be issued, 615,385 will be issued to a consulting company
controlled by an insider. The issuance of the shares is
subject to TSX Venture Exchange approval.
The Company is also pleased to announce it has entered into an
agreement to issue 1,876,923 shares, at a deemed price of
$0.065, to settle indebtedness of
$122,000, representing unpaid
management fees. The shares will be issued to a consulting
company controlled by an insider. The issuance of shares is
subject to TSX Venture Exchange and shareholder approval.
Jim Voisin, the Chief Executive
Officer, President and a director of the Company will participate
in the shares for debt by receiving, through his consulting
company, 2,492,308 shares. The participation by such officer
and director is considered a "related party transaction" as defined
under Multilateral Instrument 61-101 ("MI 61-101"). The
transaction is exempt from the formal valuation and minority
shareholder approval requirements under MI 61-101 as neither the
fair market value of the shares issued to, nor the consideration
paid by, the related party exceeded 25% of the Company's market
capitalization.
The Company expects that the proposed debt settlements will
enable the Company to secure financing.
First Mexican Gold, on a best efforts basis, is arranging a
non-brokered private placement of up to $100,000 through the sale of up to two million
units at 5 cents per unit. Each
unit consists of one common share and one whole non-transferable
share purchase warrant, with each warrant being exercisable at a
price of 8 cents per share, for a
period of two years. The financing is subject to regulatory
approval.
Proceeds from the private placement will be used to maintain
present property holdings and general corporate purposes.
The company has signed multiple Confidentiality Agreements with
qualified well-funded potential partners and is currently touring
some of these interested parties on the property in an effort to
select the best option to advance the Guadalupe property to the
next level of development.
We encourage our investors and shareholders to re-read our press
release issued July 17th 2014 and
review previously released assay results to get a better
understanding of production potential. Advancing the
Guadalupe property to early production remains our main focus.
We would like to thank our property vendors, the town of
Guadalupe and shareholders for assisting First Mexican Gold Corp in
surviving this downturn in the mining industry and being our
partners driving toward prosperity for all parties.
Jim Voisin comments: "These are
challenging times in the junior resource sector and the
preservation of key property components is essential to the
project."
The company is cancelling 400,000 options to officers and
directors that were previously issued at .25
cents.
Ms Nicole Wood has taken a leave
from being CFO of the company and will continue to do the book
keeping and regulatory filings on an as needed basis. Jim Voisin will be acting CFO in her absence
period.
First Mexican Gold Corp is an active explorer for precious
metals in Mexico and controls a
100% interest in the Guadalupe property package with the intention
of becoming an active producer. The Company holds
extensive exploration rights in this high potential exploration
area that is now attracting attention from major mining
companies.
On behalf of the Board of Directors,
Jim Voisin
President and CEO
First Mexican Gold Corp.
519 699 5352
We seek safe harbour.
Neither 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.
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.
