Geoinformatics Closes Private Placement with Geologic Resource Partnersadmin
Geoinformatics Exploration Inc. announce that it has completed the private placement with Geologic Resource Partners LLC (“GRP”) raising gross proceeds of Cdn$29,328,000 by issuing 586,560,000 common shares at a price of $0.05 per common share. The proceeds from this financing are being used to (i) repay the convertible loan facility in the amount of US$20 million held by GRP, (ii) repay US$2.5 million of advances under the bridge loan made by GRP, and (iii) for working capital purposes.
The private placement was approved by the Company’s shareholders at the Company’s special meeting of shareholders held in Vancouver, British Columbia on October 15, 2008. Minority shareholders (which excluded GRP) voted 97% in favour of the transaction. Shareholders also overwhelmingly approved a special resolution to consolidate the issued and outstanding common shares of the Company on the basis of one new common share for each ten existing common shares.
“Geologic has been a long-term investor and supporter of Geoinformatics and continues to see the tremendous value and opportunities within the Company,” commented John Kanellitsas, Chairman of Geoinformatics and Chief Operating Officer of GRP. “We now look forward to working together to develop and implement a cohesive strategy that will increase value for all shareholders. In addition, the Board would like to thank and extend its congratulations to management, both for their continued focus on proving the potential of the exploration properties and on the successful completion of this transaction, especially given the turbulent economic environment.”
GRP is the investment manager for a family of Geologic Resource funds (collectively “GRF”). In addition, Geoinformatics has issued 31,977,209 common shares to GRF in satisfaction of the interest on the convertible loan facility for the period of January 1, 2008 to October 16, 2008.
Following the private placement and satisfaction of the convertible interest, Geoinformatics has 757.1 million common shares issued and outstanding and GRF holds 642.6 million common shares of Geoinformatics, representing approximately 84.9% of the common shares outstanding.
Geoinformatics is a North American focused minerals exploration company utilizing innovative and proprietary technology to define and explore grass-roots projects. The Company’s successes include its gold-copper Whistler Project in Alaska which hosts a NI 43-101 compliant Indicated resource of 30 million tonnes grading 0.87 g/t gold, 2.46 g/t silver and 0.24% copper and an Inferred resource of 134 million tonnes grading 0.64 g/t gold, 2.18 g/t silver and 0.20% copper. In addition, there is considerable mineralization in the Whistler Zone that has been identified by drilling and reported in the 43-101 resource technical report filed on SEDAR (www.sedar.com), but has not yet been categorized as a mineral resource.
In addition, Geoinformatics is exploring several advanced projects located in Sinaloa and Sonora (Mexico), the Cortez Trend region of Nevada, and British Columbia. Geoinformatics also has an extensive portfolio of other direct and indirect property interests, joint ventures, and royalties covering a wide range of minerals in Mexico, Australia, New Zealand and North America.