Geologix Explorations Inc.
TSX VENTURE : GIX
FRANKFURT : GF6
BERLIN : GF6

Geologix Explorations Inc.

February 26, 2008 07:56 ET

Geologix Closes $18 Million Bought-Deal Offering of Units

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 26, 2008) -

NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OF AMERICA

Geologix Explorations Inc. (TSX VENTURE:GIX)(FRANKFURT:GF6)(BERLIN:GF6)(STUTTGART:GF6)(MUNICH:GF6) is pleased to announce the completion of the brokered bought-deal private placement of Units announced on February 14, 2008 with a syndicate of underwriters led by Research Capital Corporation and including Haywood Securities Inc., Salman Partners Inc. and Versant Partners Inc. The Underwriters fully exercised their option to increase the size of the offering to $18,000,000.

Geologix issued a total of 8,000,000 units at a price of $2.25 per unit. Each Unit consisted of one common share and one-quarter of one share purchase warrant. Each whole warrant is exercisable to purchase one common share at a price of $3.20 per share for a period of 24 months. Should the average closing price of Geologix's common shares after the four month anniversary of closing equal or exceed $5.00 per share for a period of 10 consecutive trading days, Geologix may give the warrant holders notice that the warrants must be exercised within 20 trading days or the warrants will terminate.

In consideration for their services, the Underwriters received a cash commission of 6.0% and were issued 479,100 non-transferable Broker Warrants. Each Broker Warrant is exercisable to purchase one Unit at a price of $2.25 for a period of 24 months. The Units issuable on exercise of the Broker Warrants have the same terms as the Units issued pursuant to the Offering.

The net proceeds received by Geologix from the sale of the Units will be used for continued exploration of its San Agustin property in Mexico, further exploration activities on properties in Peru and Nevada and for general working capital. All securities issued at closing, including any shares issued on exercise of warrants, are subject to a four-month hold period expiring on June 26, 2008.

Geologix Explorations Inc. is a mineral exploration company focused on acquiring, exploring and developing gold properties in North and South America. The Company has a wealth of experience in the mining industry taking early stage exploration prospects to final feasibility and ultimately to production.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933 (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons (as defined in the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws, or an exemption from such registration is available.

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

Contact Information

  • Geologix Explorations Inc.
    Michael Mallard
    V.P. Corporate Communications
    (604) 694-1742 or Toll Free in Canada & USA: 1-888-694-1742
    Email: mmallard@geologix.ca
    or
    Geologix Explorations Inc.
    Dunham Craig
    President & CEO
    (604) 694-1742 or Toll Free in Canada & USA: 1-888-694-1742
    Email: dcraig@geologix.ca
    Website: www.geologix.ca