Business
TerraX closes first tranche of Private Placement for $1,357,217
TSX-V: TXR Frankfurt: TX0 VANCOUVER, May 8, 2013 /CNW/ - TerraX Minerals Inc. (TSX.V:...
About this update from Gold Terra Resource Corp.
[{"type":"text","content":"\n\n\n\n\n\nTSX-V: TXR\nFrankfurt: TX0\n\n\nVANCOUVER, May 8, 2013 /CNW/ - TerraX Minerals Inc. (TSX.V: TXR; Frankfurt: TX0) has completed an initial closing of 6,786,085 units at $0.20 per share\n of its previously announced non-brokered private placement (see our\n news release of April 4, 2013) for gross proceeds of $1,357,217.  Each\n unit consists of one common share and one half of one share purchase\n warrant, with each full warrant entitling the holder to purchase an\n additional common share at an exercise price of $0.30 per share until\n May 8, 2016.   The shares and any shares acquired on the exercise of\n warrants will be subject to a hold period expiring on September 9,\n 2013.  Finder's fees of $21,480 were paid with respect to this\n placement along with the issuance of 109,200 finders warrants\n exercisable at $0.30 until May 8, 2016.   Insiders of TerraX acquired\n 250,000 units.\n\n\nVirginia Mines Inc. (TSX:VGQ) has purchased 3,617,085 units of this\n private placement for net proceeds to Terrax of $723,417.  Should\n TerraX conduct a subsequent private placement of units before May 17,\n 2013, Virginia has agreed to purchase such number of additional units\n as to allow it to maintain a holding of 9.9% of the issued and\n outstanding common shares of TerraX, up to a maximum aggregate amount\n of $800,000. The net proceeds of this private placement will be used to\n fund the upcoming 2013 exploration program on TerraX's wholly-owned\n Northbelt gold property in the Northwest Territories, 15 km from\n Yellowknife.\n\n\nTerraX also advises that it has entered into a definitive royalty option\n agreement with Virginia, whereby Virginia has been granted an option to\n acquire a 2% net smelter returns royalty on the Northbelt property (see\n our news release of April 4, 2013). Virginia may exercise the option by\n payment of $2,000,000 within 3 months following commencement of\n production. In consideration of granting the option, TerraX received\n 20,000 common shares of Virginia at a deemed price of $10.00 per share\n for aggregate consideration of $200,000.\n\n\nJoe Campbell, P. Geo, President of Terrax, states, \"Terrax is very\n pleased to close the first tranche of this private placement which was\n completed during a difficult time in global equity and metal markets,\n and the j...