TSX-V Trading Symbol: FMG
VANCOUVER, Oct. 7,
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.
Further to the Company's news release of
September 8, 2014, the Company is
pleased to announce it has received TSX Venture Exchange approval
for and closed its shares for debt of 5,503,782 common shares to
satisfy debt in the amount of $357,745.83.
The shares are subject to a hold period until
January 16, 2014, except as permitted
by applicable Canadian securities laws and the TSX Venture
Exchange.
The Company's Chief Executive Officer,
Jim Voisin, acquired control over
615,385 common shares of the Company through a holding company,
Kargi Consulting Corp., as part of the Company's debt settlement
agreements. Mr. Voisin acquired the securities for investment
purposes. Mr. Voisin intends to evaluate his investment in
the Company and to increase or decrease his beneficial
shareholdings from time to time as he may determine appropriate for
investment purposes.
Following the debt settlement, Mr. Voisin and his
joint actors beneficially own, directly, 6,424,457 common shares
and 2,200,000 incentive options, which, upon exercise of such
incentive options, represent 13.094% of the issued and outstanding
common shares of the Company on a partially diluted basis.
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 did not file a material change report
more than 21 days before the expected closing of the shares for
debt as the details of the shares for debt and the participation by
the related party was not settled until shortly prior to closing
and the Company wished to close the shares for debt on an expedited
basis for sound business reasons.
The company has signed multiple Confidentiality
Agreements with qualified well-funded potential partners and is
focussed on advancing the Guadalupe property to early leach pad
production, review previously released assay results to get a
better understanding of production potential. As
indicated in many previous releases, all results to date are at or
near surface.
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.
The annual meeting held October 6th confirmed by a large margin that
Gregg Roberts, Patrick Burns and Jim
Voisin have been re elected as directors of the Corporation.
All items put before the shareholders were passed as well.
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.
