Alexis Minerals Corporation
TSX VENTURE : AMC

Alexis Minerals Corporation

April 12, 2006 09:42 ET

Alexis Announces a $3.5 Million Firm Underwritten Private Placement Debenture Financing with Industrial Alliance Securities Inc.

TORONTO, ONTARIO--(CCNMatthews - April 12, 2006) - Alexis Minerals Corporation (TSX VENTURE:AMC) is pleased to announce that the company has accepted an offer from Industrial Alliance Securities Inc. ("Industrial Alliance") pursuant to which the Institutional Group of Industrial Alliance has agreed to purchase Units of Alexis on a firm underwritten private placement basis, for gross proceeds to Alexis of CAN$3.5 million. Industrial Alliance has the option to increase the issue size by $2.5 million to $6 million, until 48 hours prior to the closing date.

Pursuant to the terms of the private placement, Alexis will be issuing units (the "Unit"), comprised of CAN$1,000 principal convertible debentures (the "Debentures"), maturing April 28, 2010 and 150 common share purchase warrants (the "Warrants"). The $1,000 face value Debentures are unsecured and subordinated obligations of Alexis, have a coupon of 6.0% and are convertible, any time after 12 months from the closing date, into common shares of Alexis at an exercise price of CAN$ 0.75 for the second year, CAN$ 0.825 for the third year, and CAN$ 0.9075 fourth year (the "Conversion Prices"), which represents a premium of 17%, 31%, and 44%, respectively for the second, third and fourth year, over market closing price on April 8, 2006. Warrants are valid for 24 months and each warrant is exercisable for one common share at CAN$ 0.75 per common share.

Additionally, the Company has the right to redeem the debentures in their fourth year provided that the shares of the Company are trading in excess of CAN$1.13. The redemption price is equal to 90% of the 20 day trading average for the 5 days prior to the date of redemption.

As compensation for arranging the debenture financing, IAVM will receive a commission equal to 6% of the total amount of the debentures issued and will be issued warrants equal in number to 6% of the principal amount of the debentures divided by $0.75.

The offering is scheduled to close on or about April 28, 2006 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange.

"The financing is structured to minimize shareholder dilution in Alexis while supporting our goal of becoming a potential mid-tier gold-producing company by 2007," said David M. Rigg, President and CEO, Alexis Minerals. "The financing supports our gold strategy to advance Lac Herbin through underground exploration to a production decision in 2006 while also advancing gold and base metal exploration objectives across the region."

A positive scoping study on the Lac Herbin Project in 2005 indicated potential production scenarios of 35,000 ounces gold per year. An underground exploration program is on-going at Lac Herbin to delineate resources and advance the project to Feasibility in 2006, with potential production commencing by Q3-2007. A new Resource evaluation is also currently in progress at the Lac Pelletier gold property in Rouyn-Noranda and will report during May. The Alexis gold strategy includes supplemental gold production during commencing Q2-2008 from currently developed Resource areas at Lac Pelletier to increase gold production from the two operations to reach a rate of 55,000 ounces gold per year.

About Alexis Minerals

Alexis Minerals Corporation is a Canadian exploration and development company listed on the TSX Venture Exchange. Alexis holds a portfolio of properties covering approximately 212 square kilometers in the Val-d'Or area and considered highly prospective for both gold and base metals. Alexis has a clear route to 100% ownership in the properties and maintains an option to purchase the 1400 tonne per day Aurbel gold mill. The Company has also entered into option agreement with Falconbridge Limited (formerly Noranda Inc.) wherein Alexis will earn a 50% interest in all of Falconbridge's properties in the prospective Rouyn-Noranda base metal and gold camp, Quebec. The Falconbridge properties cover approximately 825 square kilometres in the Rouyn-Noranda area.

Statements in this release that are not historical facts are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned that any such statements are not guarantees of future performance and that actual developments or results may vary materially from those in these "forward looking statements"

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

Contact Information

  • Alexis Minerals Corporation
    David Rigg
    President and CEO
    (416) 861-5889
    (416) 861-8165 (FAX)
    or
    Alexis Minerals Corporation
    Peter Cashin
    Investor & Corporate Affairs
    (416) 861-5905
    or
    Alexis Minerals Corporation
    Louis Baribeau
    Relationiste, Québec
    (514) 667-2304
    info@alexisminerals.com
    www.alexisminerals.com