Kinetex Resources Corporation

Kinetex Resources Corporation

April 30, 2010 12:12 ET

Kinetex Closes Private Placement of Convertible Debentures

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 30, 2010) - Kinetex Resources Corp. (TSX VENTURE:KTX) (the "Company" or "Kinetex") is pleased to announce that it has closed the private placement announced April 21, 2010, consisting of 500,000 convertible debentures (the "Debentures"), for gross proceeds of $500,000 (the "Offering").

The Debentures will bear interest at a rate of 10% per annum, payable quarterly, in arrears, on each of March 31, June 30, Sept. 30 and Dec. 31 of each year. Unless converted earlier, principal and accrued interest under all Debentures shall be due and payable on April 17, 2013 (the "Maturity Date"). The principal amount of the Debentures will be convertible at the election of the holder into common shares (the "Common Shares") at any time prior to the Maturity Date at a conversion price of $0.60 per Common Share.

The Debentures may be redeemed at the option of the Company at any time from April 17, 2011 onward, provided that the Company shall have given the holder not less than 3 months prior written notice of its intention to redeem. Upon receipt of written notice from the Company, the holder shall have the option to convert the Debenture into Common Shares of the Company provided the holder provides written notice within 45 days of the holder's intent to convert the Debenture.

No finder's fees were paid in connection with the Offering. Proceeds of the Offering will be used for general corporate purposes.

About Kinetex
Kinetex is an oil, gas and mineral exploration services company with offices in Vancouver, BC, Calgary, Alberta and Bogota, Colombia. Through its subsidiaries, Kinetex provides data-rich high resolution subsurface images - essentially a brand-new exploration tool - to the energy, metals and minerals exploration and development industries seeking to go beyond the limitations of traditional data acquisition methods.

The Company seeks 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.

Contact Information

  • Kinetex Resources Corporation
    Gil Schneider
    Chief Executive Officer
    604-484-5761 or Toll-Free: 1-888-484-5761
    604-484-5760 (FAX)