Vancouver, British Columbia — Callinex Mines Inc. (the “Company”) is pleased to announce that it has closed its recently announced private placement (the “Private Placement”) of 6,000,000 flow-through common shares at a price of $1.10 per share to raise gross proceeds of $6,600,000.
Secutor Capital Management Corporation and Industrial Alliance Securities Inc. acted as agents (the “Agents”) for the Private Placement. The Agents and other sub-agents were paid aggregate cash commission of $528,000 and the Agents and a sub-agent were issued agent compensation options exercisable for an aggregate of 480,000 non flow-through common shares of the Company at a price of $1.10 per share until February 26, 2013.
All securities issued and issuable pursuant to the Private Placement are subject to a hold period in Canada and may not be traded therein, unless otherwise permitted under securities legislation, until December 27, 2011.
Proceeds of the Private Placement will be used to incur exploration expenditures on the Company’s Coles Creek property in British Columbia and the Company’s Gossan Hill gold property in Manitoba.
On behalf of Callinex Mines Inc.
Mike Muzylowski
President & CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Some statements in this news release contain forward-looking information. These statements include, but are not limited to, statements with respect to proposed activities, work programs and future expenditures. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, the effects of general economic conditions, the price of commodities, changing foreign exchange rates, actions by government authorities, title matters, environmental matters, reliance on key personnel, the ability for operational and other reasons to complete proposed activities and work programs, the need for additional financing and the timing and amount of expenditures. The Company does not assume the obligation to update any forward-looking statement.