Rockex Mining Corporation announce that it has closed the first tranche of a non brokered private placement of 240,000 units at USD 0.45 per Unit and 660,000 flow-through common shares at USD 0.50 per Flow-Through Share in escrow today.
An aggregate of 240,000 Units and 660,000 Flow Through Shares were sold in the first tranche to accredited investors or persons otherwise entitled to rely on prospectus exemptions under applicable securities laws for gross proceeds of USD 438,000.
Each Unit is comprised of one common share of the Corporation and one transferable Common Share purchase warrant. Each Warrant entitles the holder to purchase one Common Share at a price of USD 0.60 per share at any time within 18 months after the issuance of the Units, provided that if the average closing price of the Common Shares on the TSX for a period of 20 consecutive business days is greater than USD 1.00 per share, the Warrants will expire unless they are exercised within thirty days after the Corporation gives notice by issuing a press release and depositing a notice in the mail to each warrantholder to accelerate the expiry date of the Warrants to the date set out in such press release and notice sent by mail. Each Flow-Through Share is a Common Share issued on a flow through basis in accordance with the Income Tax Act.
The proceeds received by the Corporation from the sale of the Units will be used for working capital purposes. The gross proceeds received by the Corporation from the sale of the Flow-Through Shares will be used for exploration work on its properties in Ontario, Canada to incur expenses that will qualify as one or more kinds of expenses described in the definition of "Canadian exploration expense" in subsection 66.1(6) of the Tax Act.
Upon closing of the first tranche of the Private Placement, Rockex paid finder fees to persons qualified under applicable securities legislation to receive finder's fees at a rate of 8% in cash for a total of USD 24,000, and 10% in non-transferable finder options for a total of 60,000 finder options.
