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

Geologix Explorations Inc.

January 28, 2010 12:51 ET

Geologix Engages Salman Partners for Proposed Financing and Files Preliminary Short Form Prospectus

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 28, 2010) -

THIS PRESS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWS AGENCIES

Geologix Explorations Inc. ("Geologix" or the "Company") (TSX:GIX)(FRANKFURT:GF6)(BERLIN:GF6)(MUNICH:GF6)(STUTTGART:GF6) is pleased to announce it has entered into an agreement with Salman Partners Inc. ("Salman") as exclusive lead agent and book runner for a syndicate of agents: Salman, Fraser Mackenzie Limited and Raymond James Ltd., (collectively the "Agents"), under which the Agents have agreed to sell, on a reasonably best efforts basis, units of the Company (the "Units")(the "Offering"). The size of the Offering and the price per Unit are to be determined in the context of the market. Each Unit will consist of one common share of the Company ("Common Share") and one half of one common share purchase warrant (each full common share purchase warrant, a "Warrant"). Each whole Warrant will entitle the purchaser to acquire, at any time within 18 months from the closing of the Offering, one Common Share at an exercise price to be determined in the context of the market.

The Company has granted to the Agents an over-allotment option (the "Over-Allotment Option") exercisable, in whole or in part, within 30 days from the closing of the Offering, to sell up to an additional 15% of the number of Units offered pursuant to the Offering on the same terms as the Units, to cover over-allotments and for market stabilization purposes.

The Agents are to be paid a cash commission of 6% of the gross proceeds of the Offering. The Company has also agreed to issue to the Agents warrants of the Company ("Agents' Warrants") entitling the Agents to purchase such number of Common Shares as is equal to 6% of the number of Units sold in the Offering, on the same terms as the Warrants.

The Company has filed a preliminary short form prospectus ("Preliminary Prospectus") with the applicable securities regulatory authorities to qualify the Units offered under the Offering for distribution.

The gross proceeds of the Offering will be used towards the Company's Tepal property in Michoacan, Mexico, Libertad property in Sonora State, Mexico and general working capital purposes.

Closing is subject to all customary conditions including the receipt of all necessary regulatory approvals.

The Offering is being made pursuant to a short form prospectus to be filed in the provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland and Labrador. The Offering is subject to, among other things, the approval of the securities regulatory authorities and the Toronto Stock Exchange. The securities to be offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States or to or for the account or benefit of U.S. persons absent registration or in accordance with an applicable exemption from the registration requirements.

Geologix Explorations Inc. is a mineral exploration company focused on acquiring, exploring and developing mineral properties in North and South America.

ON BEHALF OF THE BOARD OF DIRECTORS

Dunham L. Craig, President and CEO

THIS PRESS RELEASE, PROVIDED PURSUANT TO APPLICABLE CANADIAN REQUIREMENTS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBE HEREIN. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS ABSENT REGISTRATION OR APPLICABLE EXEMPTION FROM REGISTRATION REQUIREMENTS.

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

Contact Information

  • Geologix Explorations Inc.
    Jeffrey Wilson
    V.P. Corporate Communications
    (604) 694-1742
    Toll Free in Canada and USA: 1 (888) 694-1742
    jwilson@geologix.ca
    or
    Geologix Explorations Inc.
    Dunham Craig
    President & CEO
    (604) 694-1742
    dcraig@geologix.ca
    www.geologix.ca