Oremex Resources Inc.
TSX VENTURE : ORM

Oremex Resources Inc.

May 20, 2010 17:09 ET

Oremex Resources Announces Proposed Private Placement

TORONTO, ONTARIO--(Marketwire - May 20, 2010) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES

Oremex Resources Inc. (TSX VENTURE:ORM) ("Oremex" or the "Company") announces that it intends to complete a private placement of units, at a price of $0.11 per unit, for gross proceeds of approximately $1,032,000. Each unit will be comprised of one common share of the Company and one-half of one common share purchase warrant. Each whole warrant will be exercisable to purchase one common share of the Company, at a price of $0.16 per share, for a period of two years from the date of issuance.

The proceeds of the offering will be used to fund Mexican operations, exploration and development on the Company's project portfolio, to pursue corporate acquisitions and for working capital and general corporate purposes.

Completion of the offering is subject to receipt of all regulatory approvals, including the approval of the TSX Venture Exchange. All of the securities issuable in connection with the offering will be subject to a hold period expiring four months and one day after the date of issuance.

The Company may pay a commission or finder's fee equal to up to 7% of the gross proceeds of the offering, subject to compliance with applicable securities laws.

The Company expects to complete the offering before the end of May.

The securities offered have not been registered under the United States 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 an applicable exemption from registration requirements. This release does not constitute an offer for sale of securities in the United States.

About Oremex:

Oremex is a Canadian-based exploration company with a focus on the acquisition and development of mineral properties in Mexico. The Company's most advanced project Tejamen has an inferred mineral resource of 50.8 million ounces of silver in a total of 22.6 million tonnes grading a silver-equivalent of 69.8 grams per tonne (Wardrop Engineering Report NI 43-101 compliant April 2006). Snowden Mining Industry Consultants completed a Preliminary Assessment Study (NI 43-101 compliant October 2006) demonstrating that the project can support a 10,000 tonne per day open pit, heap leach mining operation. The Company continues with discussions with various federal and state government officials and the Ejido of Tejamen (governing authority for the village and surrounding lands) for surface access rights at the Tejamen Property.

National Instrument 43-101 requires the following statement: that the preliminary assessment is preliminary in nature, that it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary assessment will be realized.

Forward-Looking Statements: The above contains forward-looking statements that are subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward-looking statements. Factors that could cause such differences include: changes in world commodity markets, equity markets, costs and supply of materials relevant to the mining industry, change in government and changes to regulations affecting the mining industry. Forward-looking statements in this release include statements regarding future exploration programs, operation plans, geological interpretations, mineral tenure issues and mineral recovery processes. Although we believe the expectations reflected in our forward-looking statements are reasonable, results may vary, and we cannot guarantee future results, levels of activity, performance or achievements.

Neither 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

  • Oremex Resources Inc.
    John Carlesso
    Executive Chairman
    416-309-4320