Close Corex private placement to Gammon Gold
Corex Gold Corp. is pleased to announce a part of the non-brokered private placement closed originally announced on July 8 2010 Gammon Gold Inc. pursuant to which (TSX: GAM) (NYSE: GRS) has acquired 4,706,000 units of the Company at a price of $ 0.68 per unit for proceeds of $ 3,200,080. Corex anticipates the conclusion of the placement of additional 1.694 million units, with other qualified investors next week for total proceeds of $ 4,352,000.
Each unit consists of one common share of the Company (a “common share”) and one half of one transferable common share purchase warrant (each whole warrant, a “Warrant”). Each warrant entitles the holder to exercise this right to purchase additional common shares at a price of $ 0.90 for a period of 24 months after completion of the Offering. All securities issued in connection with the private placement will be subject to a minimum of four months to keep time. After giving effect to the private placement will Gammon Gold owns approximately 12% of the issued and outstanding shares (approximately 14% on a fully diluted basis) of Corex. Under certain conditions, Gammon will be entitled to participate in any future funding from Corex to prevent dilution of its shareholdings. Peter Drobeck, Senior Vice President of Exploration and Business Development for Gammon, was chosen to sit on the Technical Board of Corex. Read more
