Geologix Explorations Inc.

Geologix Explorations Inc.

January 30, 2008 11:15 ET

Geologix Explorations Arranges a Brokered Private Placement of Units for Proceeds of up to $19.2 M

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 30, 2008) -


Geologix Explorations Inc. ("Geologix" or the "Company") (TSX VENTURE:GIX)(FRANKFURT:GF6) is pleased to announce that it has arranged a private placement offering (the "Offering") of up to 6,000,000 units (each a "Unit") at a price of $2.40 per Unit. The Offering will be led by Research Capital Corporation and will include Haywood Securities Inc., Salman Partners Inc. and Versant Partners Inc. as agents. The agents have been granted an option (the "Agents' Option") to increase the size of the Offering by up to 2,000,000 Units by giving written notice to the Company at any time up to 24 hours before the closing of the Offering. Should the Agents' Option be exercised, the Offering will raise gross proceeds of $19,200,000.

Each Unit will consist of one common share (each a "Common Share") and one-quarter of one Common Share purchase warrant (each whole warrant being a "Warrant"). Each Warrant will be exercisable to purchase one Common Share at a price of $3.20 per Common Share for a period of 24 months following the closing of the Offering. Should the average closing price of Geologix's Common Shares after the four month anniversary of closing equal or exceed $5.00 per Common 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.

The proceeds of the Offering will be used for continued exploration of Geologix's San Agustin property in Mexico, further exploration activities on the Company's properties in Peru and Nevada, and for general working capital.

The Company will pay the agents a cash commission equal to 6.0% of the gross proceed arising from the Offering and will issue to the agents such number of broker warrants consisting of Units, and having the same terms as the Units, as is equal to 6.0% of the number of Units sold under the Offering. All securities issued pursuant to the Offering will be subject to a four month restricted resale period from the date of closing. The Offering is expected to close on or before February 15, 2008 and is subject to exchange approval.

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 Canada and USA: 1-888-694-1742
    Geologix Explorations Inc.
    Dunham Craig
    President & CEO
    (604) 694-1742 or Toll Free Canada and USA: 1-888-694-1742