Orex Closes Flow-Through Private Placement for its Phase 2 Exploration Program at Goldboroadmin
OREX EXPLORATION INC. announce the closing of a private placement of $547,000, consisting of 7,300,000 units. On this amount, MineralFields Group, through First Canadian Securities® (a division of Limited Market Dealer Inc.), has subscribed for 5,600,000 units representing $420,000.
Each unit at a price of $0.075 per unit consists of one flow-through share and one warrant giving the right to buy one non-flow-through share at a price of $0.10 per share for a period of 12 months and at $0.15 per share for the following 12 months. Each flow-through share will entitle the holder to both the 100% CEE deduction and 15% Federal Tax credit for grassroots exploration expenses.
With respect to the $420,000 investment by MineralFields Group, First Canadian Securities® obtained a finder’s fee of 5% in cash and options equal to 10% of the number of units subscribed for on the same terms as the subscriber’s units, at an exercise price of $0.075 per unit for a period of 24 months. A 2% cash finder’s fee will also be paid to another intermediary for this financing. Additional commissions of $6,900 and 150,000 purchase warrants will be payable to intermediaries for the realization of the balance of the placement. All of the securities issued pursuant to this offering will have a hold period expiring April 30, 2009.
The proceeds from this issue of $547,500 will be used for the Phase 2 Exploration Program at the Company’s wholly owned Goldboro Property, Nova Scotia.
Orex is very pleased to continue the relationship with MineralFields Group, and it is an important milestone in the growth of Orex and for the development of the Goldboro Property.