/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
VANCOUVER, Jan. 15, 2019 /CNW/ - NGEx Resources Inc. ("NGEx" or the "Company") (TSX:NGQ)(NASDAQ OMX:NGQ), is pleased to announce that it has entered into an agreement with National Bank Financial Inc. and Cormark Securities Inc. (the "Agents"), pursuant to which the Agents have agreed to sell on a "reasonable best efforts" private placement basis, an aggregate of up to 10 million common shares (the "Common Shares") at a price of Cdn $1.00 per Common Share for aggregate gross proceeds of up to Cdn $10 million (the "Offering"). In addition, the Company will grant the Agents an option (the "Agents' Option") to increase the size of the Offering by up to 30%. The Agents' Option will be exercisable in whole or in part up to 48 hours prior to the closing date of the Offering. Please view PDF version of News Release.
The Company has agreed to pay the Agents a cash commission of 5% of the gross proceeds raised under the Offering.
Concurrent with completion of the Offering, the Company is arranging to complete a non-brokered private placement of up to an additional 10 million Common Shares at a price of Cdn $1.00 per Common Share for aggregate gross proceeds of up to Cdn $10 million (the "Non-Brokered Offering").
Completion of the Offering and the Non-Brokered Offering is expected to occur on or about January 31, 2019 and is subject to receipt of all necessary regulatory approvals, including the approval of the Toronto Stock Exchange, and certain other customary conditions. The Common Shares will be offered by way of prospectus exemptions in Canada and the Common Shares sold in the Offering and the Non-Brokered Offering will be subject to a hold period of four months plus one day under applicable securities laws in Canada. Common Shares may also be sold under the Offering in the United States pursuant to exemptions from the registration requirements It is anticipated that two shareholders who are currently insiders of the Company intend to complete a share swap whereby such insider shareholders will sell Common Shares from their holdings and intend to subscribe for a corresponding number of Common Shares under the Non-Brokered Offering. A 5% finders' fee may be payable on a portion of the Non-Brokered Offering (other than that portion of the Non-Brokered Offering subscribed for by insider shareholders).
The Company plans to use the net proceeds of the Offering and the Non-Brokered Offering towards ongoing work programs in Argentina and Chile, including completing a feasibility study on the Josemaria Project, engineering and exploration studies on the Company's other projects, repayment of existing balance owing on the Company's US$5 million Debenture, and for general corporate purposes.
The issuance of Common Shares to insiders constitutes a "related party transaction", as defined under Multilateral Instrument 61-101 ("MI 61-101"). The transactions will be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of any Common Shares issued to nor the consideration paid by such persons would exceed 25% of the Company's market capitalization.
This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein in the U.S., or in any jurisdiction in which such an offer or sale would be unlawful. The securities described herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or any U.S. state securities laws and may not be offered or sold in the U.S. or to the account or benefit of a U.S. person or a person in the U.S. absent registration or an applicable exemption from the registration requirements.
NGEx is a Canadian mineral exploration company with projects in Argentina and Chile. The Company's shares are listed on the TSX and on the OMX under the symbol "NGQ". The Company's main focus is on advancing the development of its two, large copper/gold deposits, Los Helados and Josemaría, located in Chile's Region III and adjacent San Juan Province, Argentina. The Company owns a 100% interest in the Josemaría project and is the majority partner and operator for the Los Helados project, subject to a Joint Exploration Agreement with its joint exploration partner in Chile, Pan Pacific Copper ("PPC"). The Company is also actively seeking new exploration projects and carrying out earlier stage exploration on projects with large scale potential.
This information is information that NGEx Resources Inc. is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, on January 15, 2019 at 5:45 am Pacific Time.
President and CEO
Cautionary Note Regarding Forward-Looking Statements
Certain statements made and information contained herein in the news release constitutes "forward-looking information" and "forward-looking statements" within the meaning of applicable securities legislation (collectively, "forward-looking information"). The forward-looking information contained in this news release is based on information available to the Company as of the date of this news release. Except as required under applicable securities legislation, the Company does not intend, and does not assume any obligation, to update this forward-looking information. Generally, this forward-looking information can frequently, but not always, be identified by use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events, conditions or results "will", "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative connotations thereof. All statements other than statements of historical fact may be forward-looking statements. In particular, this news release contains forward-looking statements with respect to the closing of the Offering and the Non-Brokered Offering, the insider participation in the Non-Brokered Offering, the use of proceeds from the Offering and the Non-Brokered Offering, and other risks and uncertainties.
Forward-looking information is provided for the purpose of providing information about management's current expectations and plans and allowing investors and others to get a better understanding of the Company's operating environment. Forward-looking information is based on certain assumptions that the Company believes are reasonable, including that any necessary approvals will be obtained, the proceeds will be used as currently intended, the current price of and demand for commodities will be sustained or will improve, the supply of commodities will remain stable, that the general business and economic conditions will not change in a material adverse manner, that financing will be available if and when needed on reasonable terms and that the Company will not experience any material labour dispute, accident, or failure of plant or equipment. These factors are not, and should not be construed as being, exhaustive.
Forward-looking information is necessarily based on estimates and assumptions that are inherently subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: risks and uncertainties relating to, among other things, failure to receive required approvals, the possibility that investors will not subscribe for the Offering or the Non-Brokered Offering and the risk that closing conditions may not be satisfied, as well as other risks and uncertainties more fully described under "Risks Factors" in the Company's most recent Annual Information Form and other disclosure documents which available under the Company's profile at www.sedar.com and the Company's website.
The forward-looking information contained in this news release is made as of the date of this news release. Except as required under applicable securities legislation, the Company does not intend, and does not assume any obligation, to update this forward-looking information. Although the Company has attempted to identify important factors that would cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated, or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. All of the forward-looking information contained in this document is qualified by these cautionary statements. Readers are cautioned not to place undue reliance on forward-looking information due to the inherent uncertainty thereof.
SOURCE NGEx Resources Inc.