Merrex Gold Inc.
TSX VENTURE : MXI

Merrex Gold Inc.

June 07, 2007 16:02 ET

Merrex Gold Inc. Completes $7.4 Million Brokered Private Placement

HALIFAX, NOVA SCOTIA--(Marketwire - June 7, 2007) -

NOT FOR DISSEMMINATION IN THE UNITED STATED OR FOR RELEASE VIA US NEWSWIRE SERVICES

Merrex Gold Inc. (the "Corporation") (TSX VENTURE:MXI) is pleased to announce the completion of a brokered private placement led by Pacific International Securities Inc. ("Pacific") and including Paradigm Capital Inc. and Wellington West Capital Markets Inc. (collectively the "Agents") for 7,792,000 units (the "Units") at a price of $0.95 per Unit, for total gross proceeds of $7,402,400 (the "Offering").

Each Unit consists of one common share (the "Common Shares") and one-half of a common share purchase warrant (the "Purchase Warrants"). Each full Purchase Warrant entitles its holder to purchase one additional Common Share for a period of 18 months from closing date at an exercise price of $1.25 for the first 12 months from closing date, and thereafter, at an exercise price of $1.75. The Units will be subject to a four-month hold period from the closing date.

As consideration for acting as agents, the Corporation has paid the Agents a cash commission of $320,568 and a fee in the form of 208,000 Units. In addition, the Agents received 623,360 compensation options (the "Compensation Options"). Each Compensation Option is exercisable at $1.00 into one common share of the Corporation for a period of 18 months from the Offering's closing date.

The Offering is subject to final TSX Venture Exchange acceptance for filing. All securities issued will be subject to a four-month hold period from the Offering's closing date expiring on October 8, 2007.

The net proceeds of this private placement will be used primarily to fund ongoing exploration and development activities at the Corporation's Mali Projects including diamond drilling at Merrex's Siribaya Gold Project in Mali, for the investigation and potential acquisition of new initiatives and new projects and for general corporate purposes.

Merrex is a mineral resource exploration company focused on exploration for gold in Mali, West Africa, zinc in Nova Scotia, nickel in Newfoundland, and gold in Red Lake, Ontario, with a solid organization of people and projects to enable continued aggressive growth strategy.

Merrex Gold Inc. invites the public to visit its website at www.merrexgold.com or to email us at info@merrexgold.com to be added to the Corporation's email list for press releases and updates.

This press release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future exploration drilling, exploration activities and events or developments that the Corporation expects, are forward looking statements. Although the Corporation believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this press release.

Contact Information

  • Merrex Gold Inc.
    Greg Isenor
    President & CEO
    (902) 832-5555
    or
    Merrex Gold Inc.
    Diane Webber
    Senior Geologist/Investor Relations
    (902) 832-5555
    Email: info@merrexgold.com
    Website: www.merrexgold.com