Jun 10, 2011
Merrex Gold Closes $1,750,000 Private Placement with IAMGOLD
HALIFAX, NOVA SCOTIA -- (Marketwire June 10, 2011) - Gregory Isenor, P.Geo., President and CEO of Merrex Gold Inc. ("Merrex") (TSX Venture: MXI) is pleased to announce that the private placement to IAMGOLD Corporation ("IAMGOLD") has closed (news release June 2, 2011).
The private placement to IAMGOLD of 3,500,000 units at $0.50 per unit net to treasury C$1,750,000 has closed. Each unit is comprised of one share and one-half a share purchase warrant, each whole warrant entitling the placee to acquire one additional share at $0.75 per share until September 30, 2012. If all warrants were exercised an additional 1,750,000 shares would be issued for $1,312,250 net to treasury. The placee, IAMGOLD, is Merrex's 50% earn-in partner on the Siribaya Gold Project in West Mali and, after closing this placement, IAMGOLD will hold 16,616,883 common shares representing approximately 14% of Merrex's issued capital. The units are subject to a four-month hold period. All proceeds will be added to Merrex's working capital.
About the Siribaya Gold Project
The 848 km squared Siribaya Gold Project in West Mali is Merrex's flagship property. The Siribaya Gold Project is being explored in conjunction with Merrex's 50% earn-in partner IAMGOLD Corporation. The 2011 exploration program within the Siribaya mega-structure includes 30,000 metres of RC drilling to further extend the explored strike length of the Siribaya trends from three to seven kilometres and begin RC drilling at Bambadinka, and 10,000 metres of diamond drilling to increase the present NI 43-101 resource.
Outside of the Siribaya structures new mineralized trends have been discovered: Siribaya West which lies to the west of the Bambadinka trend, and the Babara trends which lie to the east of Siribaya on the Babara and Kofia permits. These trends will be further tested during the 2011 field season.
Merrex is a Mali focused gold exploration company with experienced management, a solid exploration team, a prominent gold-producer as a partner and an expanding gold resource ... a winning combination offering investors an extraordinary opportunity.
Please visit our website at www.merrexgold.com for the most recent corporate presentation.
On Behalf of the Board
Gregory Isenor, P.Geo.
President & CEO
Merrex Gold Inc.
1550 Bedford Highway
Suite 802, Sun Tower
Bedford, NS B4A 1E6
Tel.: (902) 832-5555
Fax: (902) 832-2223
This press release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future exploration drilling, exploration activities and events or developments that the Company expects, are forward looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions.
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.
You can view the Next News Releases item: Thu Jun 30, 2011, Merrex Provides Siribaya Gold Project Exploration Update
You can view the Previous News Releases item: Thu Jun 2, 2011, Merrex Gold Private Placement
You can return to the main News Releases page, or press the Back button on your browser.