Adex Mining Inc.

Adex Mining Inc.

March 20, 2007 15:07 ET

Adex Mining Inc. Announces Completion of $500,000 Private Placement and Conversion of Debentures

TORONTO, ONTARIO--(CCNMatthews - March 20, 2007) -

NOT FOR DISSEMINATION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Adex Mining Inc. ("Adex" or the "Corporation") announced today that on March 16, 2007 it completed its previously announced private placement of up to $500,000 principal amount of convertible debentures (the "Debentures") and up to 5,000,000 common share purchase warrants (the "Debenture Warrants") in order to raise up to a maximum of $500,000 (the "Private Placement"). The full $500,000 principal amount of Debentures and 5,000,000 Debenture Warrants were issued for gross proceeds of $500,000.

The Private Placement was completed pursuant to an order issued by the Ontario Securities Commission on February 22, 2007 varying the cease trade order applicable to the securities of the Corporation.

The Debentures are unsecured and will not bear interest until nine months after the date of issuance and thereafter will bear interest at the rate of 8% per annum, payable quarterly in arrears. The Debentures are convertible at the option of the holder into common shares of the Corporation on the basis of one common share of the Corporation for each $0.10 of principal amount converted (the "Conversion Rate"). The Convertible Debentures will be automatically converted at the Conversion Rate on the day (the "Listing Date") on which the common shares of the Corporation are listed on a recognized stock exchange in Canada which, for greater certainty, includes, without limitation, the TSX Venture Exchange.

As part of the Private Placement, subscribers were also issued ten Debenture Warrants for each one dollar of principal amount of Debentures subscribed for. Each Debenture Warrant will entitle the holder to acquire one common share of the Corporation at a price of $0.10 per common share until the date which is nine months following the Listing Date, thereafter at a price of $0.20 per common share for the next nine months and thereafter at a price of $0.30 for the next six months. In any event, the Debenture Warrants will expire on the earlier of: (i) the second anniversary of the Listing Date; and (ii) June 30, 2009.

The Private Placement was non-brokered and all four of the directors of the Corporation participated, directly or indirectly, in the Private Placement. The principal amount of the Debentures and the number of Debenture Warrants subscribed for by each director, directly or indirectly, is as follows:



Name of Subscriber Principal Amount of Number of Debenture
Debentures Warrants
------------------ ------------------- -------------------

Kabir Ahmed $60,000 600,000

J. Errol Farr $30,000 300,000

Alan T. Marshall $10,000 100,000

William B. Burton $10,000 100,000


The Corporation is a reporting issuer in Ontario and British Columbia whose securities are currently subject to cease trade orders issued by each of the Ontario Securities Commission and the British Columbia Securities Commissions (the "CTOs"). The proceeds of the Private Placement will be used by the Corporation for legal, professional, audit, and regulatory filing fees in relation to its efforts to obtain the revocation of the CTOs; maintenance of its primary asset, the Mount Pleasant Mine; and for working capital and general and corporate purposes.

On March 20, 2007, all $500,000 principal amount of the Debentures, including the $110,000 principal amount of Debentures held by the directors of the Corporation, were converted into an aggregate of 5,000,000 common shares of the Corporation.

About Adex:

Adex is a reporting issuer in Ontario and British Columbia whose securities are currently subject to cease trade orders issued by each of the Ontario Securities Commission and the British Columbia Securities Commission. The Corporation's primary asset is the Mount Pleasant Mine, a dormant multi-metal mine development project located in Charlotte County, New Brunswick, approximately 80 kilometres south of Fredericton, 97 kilometres northwest of Saint John and 38 kilometres north of St. George.

No securities commission or regulatory authority has approved or disapproved the contents of this press release.

Contact Information

  • Adex Mining Inc.
    Kabir Ahmed
    Chief Executive Officer and Director
    (416) 941-9663
    (416) 946-1951 (FAX)