Guerrero Exploration Inc.
TSX VENTURE : GEX

Guerrero Exploration Inc.

May 04, 2011 05:00 ET

Guerrero Announces $2,000,000 Unit Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 4, 2011) - Guerrero Exploration Inc. ("Guerrero" or the "Corporation") (TSX VENTURE:GEX) is pleased to announce it is undertaking a non-brokered private placement of up to $2,000,000 by the issue of up to 8,000,000 units at $0.25 per Unit. Each Unit consists of one common share and one common share purchase warrant entitling the holder to acquire an additional common share for $0.50 for a period of 18 months from closing. Insiders may participate in the private placement for up to 25% of the offering. Proceeds will be used for general working capital and exploration on the Corporation's mining properties. The Units issued in connection with the private placement will be subject to a four month hold period from the date of closing.

David Stadnyk, President & CEO of Guerrero Exploration Inc., stated, "The positive results announced by Newstrike Capital Inc. in their Press Release, dated April 20, 2011 of 230.95 Metres of 7.5 G/T of Gold on their Ana Paula Project, which is located 69 km to the east of Guerrero's Cerro Azul Property along the Southern Mexico Gold Belt, are very encouraging for Guerrero. Upon completion of this offering Guerrero will be able to advance its 2011 capital commitments and continue to accelerate, with its joint venture partner, the Cerro Azul and Chapolota exploration work and drill programs."

A finder's fee of up to 8.0% of the gross proceeds of the private placement may be paid on all or any portion of this private placement. In addition, finders will receive Finders Warrants equal to up to 8% of the number of shares issued in connection with the private placement. Each Finders Warrant will entitle the holder to purchase one common share at a price equal to the subscription price for the shares for a period of one year after the closing. The completion of the private placement is subject to regulatory approval including approval of the TSX Venture Exchange.

About Guerrero Exploration Inc.

Guerrero Exploration Inc. is committed to a long term business strategy designed to achieve optimal levels of profitability and shareholder value. Guerrero Exploration Inc. is a Canadian based exploration mining company with a focus on the high yielding Mexican copper, gold and silver mining area known as the Guerrero Gold Belt and the Sierra Madre Occidental Belt. The Corporation's common shares trade on the TSX Venture Exchange under the symbol "GEX".

Advisory

Certain statements and information contained in this press release, including but not limited to management's assessment of Guerrero's future plans and operations, geological results and proposed exploration plans contain forward-looking statements. In particular, this press release contains statements concerning the anticipated completion and review of exploration programs and assays. All statements other than statements of historical fact may be forward looking statements. These statements, by their nature, are subject to numerous risks and uncertainties, some of which are beyond Guerrero's control including the effect of general economic conditions, industry conditions, changes in regulatory and taxation regimes, volatility of commodity prices, escalation of operating and capital costs, currency fluctuations, the availability of services, imprecision of reserve estimates, geological, technical, drilling and processing risks, environmental risks, weather, the lack of availability of qualified personnel or management, stock market volatility, the ability to access sufficient capital from internal and external sources and competition from other industry participants for, among other things, capital, services, acquisitions of reserves, undeveloped lands and skilled personnel that may cause actual results or events to differ materially from those anticipated in the forward looking statements. Such forward-looking statements, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated in the statements made and should not unduly be relied on. These statements speak only as of the date of this press release. Guerrero does not intend and does not assume any obligation to update these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. Guerrero's business is subject to various risks that are discussed in its filings on the System for Electronic Document Analysis and Retrieval (SEDAR).

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Guerrero Exploration Inc.
    David Stadnyk
    President and Chief Executive Officer
    (604) 685-0088 Ext. 229

    Guerrero Exploration Inc.
    Investor Relations
    (604) 685-0088 Ext. 228
    info@grxpl.com