Georox Resources Inc. closes private placement of 2,730,000 units

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[{"type":"text","content":"\n\n\n\nNELSON, BC, Dec. 16 /CNW/ - Georox Resources Inc. ("Georox" or the\n"Corporation") (GXR:TSX-V; OF6A:FRA) is pleased to announce that on December\n15, 2008 it closed its previously announced non-brokered private placement\n(the "Private Placement") of 2,730,000 Units in the capital of the Corporation\nat $0.05 per Unit for aggregate gross of $136,500.\n\n\nEach Unit is comprised of one common share of the Corporation and\none-half of one common share purchase warrant. Each whole common share\npurchase warrant entitles the holder thereof to purchase one additional common\nshare of the Corporation at a price of $0.10 per common share at any time\nprior to 4:30 p.m. (Calgary time) on December 15, 2010. All securities issued\nunder the Private Placement are subject to a hold period of four months\nfollowing the date of closing, in accordance with applicable securities laws.\n\n\nThe proceeds of the Private Placement will be utilized for working\ncapital purposes.\n\n\nParticipation in the Private Placement by directors, officers and\nemployees of Georox was 1,650,000 Units or approximately 60.4 % of the Units\nissued pursuant to the Private Placement. As a result of the participation of\ndirectors and officers in the financing, Multilateral Instrument 61-101\nrequires Georox to obtain minority approval and a formal valuation for the\nfinancing unless an exemption from the minority approval and valuation\nrequirements is available. Such an exemption is available to Georox as at the\ntime the transaction was agreed to, neither the fair market value of the\nsubject matter of, nor the fair market value of the consideration for, the\ntransaction, insofar as it involves interested parties, exceeded 25% of\nGeorox's market capitalization.\n\n\nAfter giving effect to this Private Placement, the Corporation will have\n12,964,518 outstanding common shares. An additional 1,365,000 common shares\nwill be reserved for issuance on exercise of the common share purchase\nwarrants issued pursuant to the Private Placement and an additional 506,667\ncommon shares are currently reserved under the Corporation's stock option\nplan.\n\n\nThe Private Placement is subject to final acceptance by the TSX Venture\nExchange.\n\n\nAbout Georox\n\n\nGeorox Resources Inc. is a mineral exploration company engaged in the\nacquisi...

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