Oremex Silver Inc. Announces Private
Placement
Oremex Silver Inc. (TSXV: OAG)
(OTCQX: ORAGF) (FRANKFURT: OSI) (the "Company") today
announced that it intends to complete a non-brokered private placement of: (i) up to 13,636,364 units of the Company (the "Share
Units"), each Share Unit consisting of one common share (a "Share")
and common share purchase warrant (a "Warrant"), at a purchase
price of $0.055 per Share Unit for aggregate gross proceeds of
up to $750,000; and (ii) up to $750,000 of
debenture units of the Company (the "Debenture Units"),
each Debenture Unit consisting of $1,000 principal amount of
convertible debentures of the Company (the "Debentures") and
10,000 Warrants, at a purchase price of $1,000 per Debenture
Unit.
All Warrants will be
exercisable into Shares at a price of $0.10 per Share, expiring
in five (5) years from the date of issue. The Debentures will be convertible
into Shares at a price of $0.10 per Share and mature in five (5)
years from the date of issue.
The Debentures will bear
interest at a rate of 16% per year; 8% is payable in cash and, at the option of
the Company, 8% is payable in common shares. The obligations of the Company
under the Debentures will be guaranteed by the Company's Mexican subsidiary, Minera Mantos S. de R.L. de
C.V., which guarantee will be secured by a pledge of the mining
concessions forming the Company's Tejamen
and Chalchuites properties, as well as other personal
property.
In connection with the
offering, the Company may pay finder's fee payable in Shares at an issue price
of $0.055 per Share.
All securities issued under
the private placement will be subject to a four-month hold period, in addition
to such other restrictions as may apply under applicable securities laws in
jurisdictions outside of Canada.
The private placement is subject to the receipt of necessary approvals,
including the approval of the TSX Venture Exchange.
This news release does
not constitute an offer to sell or a solicitation of an offer to buy any of the
company's securities in the
United States. The securities have not been and will not be
registered under the United States Securities Act of 1933, as amended (the 1933
Act), or any state securities laws and may not be offered or sold within the
United States or to U.S. persons unless registered under the 1933
Act and applicable state securities laws, or an exemption from such
registration is available.
About Oremex Silver
Inc.
Oremex Silver Inc. is a Canadian
company focusing on the exploration and development of silver projects along
the highly productive mineralized belt in Mexico.
The Company has a portfolio of silver projects including a mineral resource of
50.8 million ounces of silver at its Tejamen
deposit. The Company's projects are located in mining-friendly jurisdictions
and the Management Team has successful track record of mine building in Mexico.
Cautionary Note
Regarding Forward-Looking Statements
Certain statements
contained in this news release may constitute forward-looking information,
(collectively "forward-looking information") within the meaning of Canadian
securities laws. Forward-looking information may relate to this news release
and other matters identified in Oremex Silvers'
public filings, anticipated events or results and can be identified by
terminology such as "may", "will", "could",
"should", "expect", "plan",
"anticipate", "believe", "intend",
"estimate", "projects", "predict",
"potential", "continue" or other similar expressions
concerning matters that are not historical facts and include, but are not
limited in any manner to, those with respect to capital and operating
expenditures, economic conditions, availability of sufficient financing,
receipt of approvals, satisfaction of closing conditions and any and all other
timing, development, operational, financial, economic, legal, regulatory and/or
political factors that may influence future events or conditions. Such
forward-looking statements are based on a number of material factors and
assumptions, including, but not limited in any manner, those disclosed in any
other public filings of� Oremex
Silver, and include the ultimate availability and final receipt of required
approvals, sufficient working capital for development and operations, access to
adequate services and supplies, availability of markets for products, commodity
prices, foreign currency exchange rates, interest rates, access to capital
markets and other sources of financing and associated cost of funds,
availability of a qualified work force, availability of manufacturing
equipment, no material changes to the tax and regulatory regime and the
ultimate ability to execute its business plan on economically favourable terms. While we consider these assumptions to be
reasonable based on information currently available to us, they may prove to be
incorrect. Actual results may vary from such forward-looking information for a
variety of reasons, including but not limited to risks and uncertainties
disclosed in other� Oremex
Silver� filings at� www.sedar.com� and other unforeseen events
or circumstances. Other than as required by law,� Oremex Silver� does not intend, and undertakes no obligation,
to update any forward looking information to reflect, among other things, new
information or future events.