Junex inc.

Junex inc.

November 09, 2007 11:40 ET

Junex Closes $5.75 Million Private Placement

QUEBEC CITY, QUEBEC--(Marketwire - Nov. 9, 2007) - Junex Inc. (TSX VENTURE:JNX) announces that it has closed its previously-announced private placement by issuing 4,423,076 units to investors resident in the provinces of Quebec and Ontario at a price of $1.30 per unit, for gross proceeds to Junex of $5,750,000. Each unit consists of one "flow-through" common share and one-half of a common share purchase warrant. Each whole warrant entitles the holder to acquire one additional common share of Junex at a price of $1.60 per share until November 9, 2009.

The private placement was conducted through a syndicate of agents led by Laurentian Bank Securities Inc. and included D&D Securities Inc. and Canaccord Capital Corporation (collectively the "Agents"). At the closing, Junex granted broker warrants to the Agents, entitling them to acquire, in the aggregate, up to 287,500 additional common shares, representing 6.5% of the number of "flow-through" common shares sold in the private placement. The broker warrants are exercisable at a price of $1.30 per share until November 9, 2009.

As a result of the private placement, there are 52,204,170 common shares of Junex issued and outstanding.

Under applicable securities legislation and policies of the TSX Venture Exchange, the "flow-through" common shares and warrants issued in the private placement are subject to a hold period expiring on March 10, 2008.

Junex will use the proceeds of the placement to pursue oil and gas exploration work in Quebec, including on its 1-million acre Baie des Chaleurs project, where many important structures have already been identified by seismic data and where recent drilling provided favourable indications as to the oil and gas potential of the area. Exploration work will also be performed in the region of Becancour, where Junex holds land rights in the vicinity of the Gentilly prospect drilled by Talisman and Questerre Energy earlier this year. Finally, Junex also expects to use the proceeds of the placement to develop the Haldimand oil project where an oil discovery was made in 2006.

About Junex

Junex holds exploration rights on more than 6 million acres of land located in the Appalachian basin in the province of Quebec. Recent major discoveries in the United States and Eastern Canada have stimulated exploration in Quebec, which is located in a favourable geological setting for oil and gas discovery. Junex's strategy is to reduce exploration risks by entering into partnerships with other exploration companies. In parallel to its exploration efforts, Junex's goal is to achieve positive cash flows from its natural brine and drillings services operations.

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

Contact Information

  • Junex Inc.
    Mr. Jean-Yves Lavoie
    Junex Inc.
    Mr. Dave Pepin
    Corporate Affairs