Canmex Minerals Corporation

March 14, 2007 10:17 ET

Canmex Announces Cdn $20 Million Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 14, 2007) - Canmex Minerals Corporation ("Canmex" or "the Company") (TSX VENTURE:CXM) reports that it has agreed to sell, on a non-brokered, private placement basis, up to an aggregate of 4 million common shares of the Company at a price of Cdn $5 per share for gross proceeds of up to Cdn $20 million. A 5% finders' fee may be payable on a portion of the private placement. The shares issued pursuant to the private placement will be subject to a four month hold period from the date of closing. Net proceeds of the private placement will be used towards the Company's proposed work program on the Nogal and Dharoor oil exploration projects in Puntland, Somalia as well as for general working capital purposes. The private placement is subject to regulatory approval.

Pursuant to Venture Agreements entered into by Canmex and Range Resources Limited on March 4, 2007, Canmex has acquired an 80% participating interest in the licenses and operatorship of the Nogal and Dharoor projects, in consideration for a financial commitment, over a six year period, of approximately US$50 million in exploration expenditures and the payment to Range of an additional US$3.5 million upon commencement of commercial production. The TSX Venture Exchange has conditionally approved the acquisition of the 80% participating interest by Canmex, subject only to the filing of final documentation.

A comprehensive exploration work program is proposed in respect of each of the two exploration areas, which will include:

a) Geological fieldwork;

b) Acquisition of surface high resolution geochemical surveys;

c) Reprocessing of prior 2D seismic (up to an aggregate of 1,000 line km);

d) Review and integration of all geophysical and geological data; and

e) Drilling of four exploratory wells.

The rights and obligations of Range and Canmex in respect of the Nogal and Dharoor projects are governed by the Venture Agreements and by the terms of the Operating Agreements entered into by the parties in respect of each of the two exploration areas.

Forward-looking statements: This press release contains statements about expected or anticipated future events and financial results that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties, such as political risk, general economic, market and business conditions, the regulatory process and actions, technical issues, new legislation, competitive and general economic factors and conditions, the uncertainties resulting from potential delays or changes in plans, the occurrence of unexpected events and management's capacity to execute and implement its future plans. Actual results may differ materially from those projected by management.


Rick Schmitt, President

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

Contact Information

  • Canmex Minerals Corporation
    Sophia Shane
    Corporate Development
    (604) 689-7842
    (604) 689-4250 (FAX)