CMX Gold & Silver Corp.

June 30, 2011 17:37 ET

CMX Gold & Silver Corp. Announces Subscription Receipts Private Placement Financing

CALGARY, ALBERTA--(Marketwire - June 30, 2011) - Jan Alston, President of CMX Gold & Silver Corp. ("CMX" or the "Company") announces that the Company will undertake a brokered private placement of 20,000,000 subscription receipts (the "Subscription Receipts") for gross proceeds of up to CAD$4,000,000 (the "Offering"). Union Securities Ltd. ("Union") of Calgary, Alberta will act as the Company's exclusive agent in Canada for the Offering, and receive an 8% cash commission on all proceeds raised by Union and a 2% cash commission on all other proceeds raised by the Company in connection with the Offering. In addition, Union will receive broker warrants equal to 10% of the shares sold by Union and broker warrants equal to 2% of the shares sold by the Company in connection with the Offering. The Company will issue Subscription Receipts to subscribers pursuant to private placement exemptions from prospectus requirements as provided for in the Securities Act (Alberta) and comparable provisions in other provinces in Canada and in the United States. Each Subscription Receipt will automatically be exchanged without payment of any additional consideration or further action on the part of the holder thereof, into one common share ("Common Shares") in the capital of the Company and one share purchase warrant exercisable at CAD$0.35 per Common Share for a period of 24 months following the closing of the Offering.

The gross subscription proceeds will be held in an escrow account with release conditional on approval of listing of the Company's Common Shares on the TSX Venture Exchange. There is no certainty that the Company will receive approval of listing of its Common Shares on the TSX Venture Exchange. In the event the Company's Common Shares are not listed for trading on the TSX Venture Exchange before October 31, 2011, the gross subscription proceeds held in escrow shall be repaid to the subscribers.

Funds from the Offering will be used for the Company's exploration programs on the Clayton Silver Mine Property in Idaho and the Marietta Gold/Copper Property in Nevada, and for general working capital requirements.

WARNING: the Company relies upon litigation protection for "forward looking" statements. The information in this release may contain forward-looking information under applicable securities laws. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those implied by the forward-looking information. Factors that may cause actual results to vary material include, but are not limited to, inaccurate assumptions concerning the exploration for and development of mineral deposits, currency fluctuations, unanticipated operational or technical difficulties, changes in laws or regulations, the risks of obtaining necessary licenses and permits, changes in general economic conditions or conditions in the financial markets and the inability to raise additional financing. Readers are cautioned not to place undue reliance on this forward-looking information. The Company does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.

Contact Information