Canamex Announces Closing of CDN$1,500,000 of Secured Convertible Debentures

About this update from Canamex Gold Corp

[{"type":"text","content":"Canamex Announces Closing of CDN$1,500,000 of Secured Convertible Debentures(via Thenewswire.ca)\n \n \nTheNewswire / October 20, 2015 - Canamex Resources Corp. (TSX-V: CSQ) (\"Canamex\" or the \"Company\") is pleased to announce that it has closed a non-brokered private placement for gross proceeds of Cdn$1,500,000 (the \"Offering\"); the Offering has received conditional acceptance by the TSX Venture Exchange (\"TSX-V\").\n\n \n \nThese funds were raised by the Company issuing an aggregate principal amount of Cdn$1,500,000 of secured convertible debentures (the \"Debentures\"), maturing in one year after closing of the Offering (the \"Maturity Date\"). From and after the date of issue until the Maturity Date, the Debentures will be convertible into units (\"Units\") at the option of the holder at a conversion price of $0.05 per Unit (the \"Conversion Price\"). \n\n \n \nEach Unit is comprised of one common share of the Company (\"Common Share\") and one-half of one warrant (\"Warrant\"). Each whole Warrant will be exercisable into one Common Share on or before April 20, 2017 at an exercise price of $0.05 per share. Interest on the Debentures shall be paid quarterly in arrears, at an annual rate of interest of 10% per annum.\n\n \n \nThe Debentures will have a first ranking security over the Company's interest in its joint venture with Provex Resources in respect of the Bruner Gold Property, such joint venture to be formally set up in the near future. Until that time, the Debentures will be secured by the general assets of the Company.\n\n \n \nThe proceeds from the Offering will be used for property payments, exploration drilling, metallurgy and a Preliminary Economic Assessment with respect to the Bruner Gold Property in Nye County, Nevada, and for general working capital.\n\n \n \nThe Offering was concluded with one fund (the \"Fund\") that is not resident in Canada. On a fully diluted basis, assuming the conversion of the Debentures into Units and the exercise of all underlying Warrants, the Fund would have more than 20% of the Common Shares of Canamex, thereby possibly creating a new control person. In this regard, the Fund has signed an undertaking with the TSX-V that it will not acquire 20% or more of the Common Shares of Canamex unless it has obtained disinterested shareholder approval of the Company.\n\n \n \nIn connec...

More updates from Canamex Gold Corp