Norex Exploration Services Inc.

Norex Exploration Services Inc.

November 08, 2005 09:13 ET

Norex Announces up to $15 Million Financing

CALGARY, ALBERTA--(CCNMatthews - Nov. 8, 2005) - Norex Exploration Services Inc. ("Norex" or the "Company") (TSX VENTURE:NRX) announced today that it has entered into a term sheet in respect of the issuance of 14,925,373 units on a private placement basis. Up to 3% of such units will be issued to directors and officers of Norex, while the balance will be issued to ARC Energy Venture Fund 4 or another fund managed by ARC Financial Corporation ("ARC"). Each unit consists of one common share priced at $0.67 per share and 0.40 of a warrant. Each whole warrant will entitle the holder thereof to purchase one Norex common share at a price of $0.84 per share, for a period of one year from closing. Gross proceeds from the issuance of the units will be $10 million with an additional $5.0 million of proceeds should the share purchase warrants be exercised in their entirety. In connection with this private placement, ARC will be entitled to appoint two directors to the Norex board of directors, in replacement of two Norex directors.

Closing of this proposed financing is conditional upon further due diligence on behalf of ARC, the receipt of all necessary regulatory approvals (including from the TSX Venture Exchange) and completion of definitive agreements typical to this type of financing.

Proceeds from this financing will be used to fund the Company's corporate acquisition strategy, purchase of seismic recording equipment, and for general working capital purposes.

Requests for shareholder information should be directed to the below.

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

Contact Information

  • Norex Exploration Services Inc.
    Mr. Paul Crilly
    President and CEO
    (403) 291-0601