Canamex Silver Corp.
TSX VENTURE : CSQ.H

October 08, 2010 16:26 ET

Canamex Closes $300,000 Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 8, 2010) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Canamex Silver Corp. (the "Company") (TSX VENTURE:CSQ.H) announces that it has closed the private placement announced in a News Release dated June 2, 2010, as amended September 9, 2010. On October 8, 2010 the Company received acceptance from the TSX Venture Exchange to close the private placement.

In accordance with the provisions of the Subscription Agreements, on October 8, 2010, the Company issued a total of 6,000,000 Units at $0.05 per Unit, each Unit consisting of one common share and one share purchase warrant, each warrant entitling the holder to purchase one (1) additional common share at $0.15 per share on or before October 7, 2011.

These shares and any shares issued on exercise of the warrants will be subject to a hold period under applicable Canadian securities laws expiring on February 9, 2011, and will be subject to such further restrictions on resale as may apply under applicable foreign securities laws.

Three insiders have together directly and/or indirectly subscribed for a total of 500,000 Units from the financing, and accordingly those related parties may acquire up to an additional 500,000 common shares in the capital stock of the Company (excluding warrant shares) which will increase their pro rata shareholdings in the Company (the "Related Party Transaction"). All of the independent directors of the Company, acting in good faith, have determined that the fair market value of the securities being issued and the consideration paid is reasonable and, with the value of the Related Party Transaction being less than 25% of the Company's market capitalization, is exempt from the formal valuation and minority shareholder approval requirements of the Ontario Securities Commission's Rule 61-501.

The Company paid a finders fee of $2,250 in connection with this financing.

ON BEHALF OF THE BOARD

Richard Barnett, Chief Financial Officer

Neither the 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

  • Canamex Silver Corp.
    Richard Barnett
    Chief Financial Officer
    (604) 718-2800
    (604) 718-2808 (FAX)