ARGEX MINING ANNOUNCES COMPLETION OF OVERSUBSCRIBED $5,250,000 SPECIAL WARRANT PRIVATE PLACEMENT THROUGH MGI SECURITIES
Sep. 29, 2010 (Canada NewsWire Group) --
Subscribers include 11 institutional investors
Size of the private placement increased to meet demand
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
MONTREAL, Sept. 29 /CNW Telbec/ - Argex Mining Inc. ("Argex") (TSX-V: RGX) (FSE: ASV) (OTCBB: ARGEF) is pleased to announce that it has completed its previously-announced private placement by issuing an aggregate of 17,500,000 special warrants (each, a "Special Warrant") at a price of $0.30 per Special Warrant, for gross proceeds to Argex of $5,250,000.
Each Special Warrant entitles its holder to purchase, for no additional consideration, one common share (each, a "Common Share") and one common share purchase warrant (each, a "Warrant") of Argex. Each Warrant will entitle its holder to purchase one additional Common Share at a price of $0.52 until September 29, 2014.
Argex intends to use the net proceeds from the private placement to fund ongoing metallurgical, engineering and development projects, and for working capital and general corporate purposes. "The proceeds from this private placement will allow Argex to accelerate its engineering and scoping study work on the La Blache Project, which Argex intends to have ready for mini-plant work in 2011," said Michael Dehn, President and Chief Executive Officer of Argex.
Argex will file a prospectus with the securities commissions of certain of the provinces of Canada to qualify the Common Shares and Warrants issuable upon the exercise of the Special Warrants. In the event that Argex fails to obtain a receipt for a final prospectus by January 30, 2011, each Special Warrant will entitle its holder to purchase, for no additional consideration, 1.1 Common Shares and 1.1 Warrants (in lieu of one Common Share and one Warrant). The Special Warrants will be automatically exercised (if not previously exercised) on the earlier of January 30, 2011, and the fifth business day after a receipt has been issued for the final prospectus.
MGI Securities Inc. ("MGI") acted as agent for the private placement. In connection with the private placement, Argex paid MGI a cash commission of $388,944 and issued non-transferable broker warrants to MGI and Wellington West Capital Markets Inc., entitling them to acquire a maximum of 1,750,000 units (each, a "Unit") of Argex at a price of $0.30 per unit until September 29, 2012. Each Unit will be comprised of one Common Share and one Warrant. Each Warrant will entitle its holder to acquire one additional Common Share at a price of $0.52 per Common Share until September 29, 2014.
As the date hereof there are 56,992,300 common shares of Argex issued and outstanding. Under applicable securities legislation and the policies of the TSX Venture Exchange, the securities issued in the private placement are subject to a four-month hold period expiring on January 30, 2011.
About MGI Securities Inc.
MGI is an integrated Canadian investment dealer offering professional wealth management solutions for individual investors, a comprehensive range of specialized services for institutional investors, and corporate finance advisory services for issuers, including mergers and acquisitions, equity underwritings, corporate restructuring, structured financings, market research, and business valuation services. MGI is based in Toronto, with additional offices in Winnipeg, Saskatoon, Calgary and London, Ontario. MGI is a member of IIROC and is a subsidiary of Jovian Capital Corporation (TSX: JOV.TO). MGI has approximately $1.3 billion in client assets under administration.
About Argex Mining Inc.
Argex is a junior titanium, iron, vanadium and magnesium explorer with projects in Québec, Canada. Headquartered in Montreal, Québec, the company is committed to the interests of its shareholders, with plans to rapidly advance towards titanium production at the 100%-owned La Blache deposit located near Baie-Comeau, Québec. Argex also owns 100% of the Mouchalagane Iron Ore project, 380 kilometres north of Baie-Comeau, Québec and of the same type of deposit as ore bodies currently being mined by Québec Cartier Mining's (Arcelor Mittal) Fire Lake Mine and Consolidated Thompson's Bloom Lake Mine. Recently, Argex expanded its land holdings near Baie-Comeau, Québec surrounding Consolidated Thompson's Lac Brûlé Titanium-Iron-Vanadium deposit. For additional information, please visit our website at www.argex.ca.
Forward-LookingStatements
This news release contains discussion of items that may constitute forward-looking statements within the meaning of securities laws that involve risks and uncertainties. Although the company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurances that its expectations will be achieved. Factors that could cause actual results to differ materially from expectations include the effects of general economic conditions, actions by government authorities, uncertainties associated with contract negotiations, additional financing requirements, market acceptance of the Company's products and competitive pressures. These factors and others are more fully discussed in Company filings with Canadian securities regulatory authorities
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.
Michael Dehn, President and CEO
Argex Mining Inc.
647-477-2382
michael@avantimac.com
Or
Paradox Public Relations at 514-341-0408 or 1-866-460-0408
Source: Canada Newswire (September 29, 2010 - 7:12 PM EDT)
News by QuoteMedia
www.quotemedia.com
AI
