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| | March 08, 2010
Geologix Closes $4,059,049 Public Offering
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| | This Press Release is not for Distribution in the United States or to U.S. News Agencies
Vancouver, B.C., March 8, 2010 - Geologix Explorations Inc. (the "Company" or "Geologix") is pleased to announce it has completed an offering of 18,450,224 units (the "Units") of the Company (the "Offering") at a price of $0.22 per Unit for gross proceeds of $4,059,049.28.
Each Unit consists of one common share of the Company ("Common Share") and one half of one Common Share purchase warrant (each full Common Share purchase warrant, a "Warrant"). Each whole Warrant entitles the purchaser to acquire, at any time until March 8, 2012, one Common Share at an exercise price of $0.30, except that if over a period of 20 consecutive trading days prior to the expiry of the Warrant, the daily volume weighted average trading price of the Common Shares on the TSX, or such other stock exchange where the majority of the trading volume occurs, exceeds $0.50 on each of those 20 consecutive days, the Company may give notice in writing to the Warrant holders within 30 days of such an occurrence that the Warrants shall expire at 5:00 pm (Vancouver time) on the 30th day following the giving of such notice.
The syndicate of agents led by Salman Partners Inc. and including Fraser Mackenzie Limited and Raymond James Ltd., (collectively the "Agents"), received a cash commission of 6% of the gross proceeds of the Offering, excluding proceeds derived from Offered Units subscribed for by persons on a President's List, for which the Agents receive a cash commission of 3% of the gross proceeds. Subscribers from the President's List, comprised primarily of directors, officers, and employees of the Company, accounted for approximately 9% of the total offering. The Company has issued to the Agents warrants of the Company ("Agents' Warrants") entitling the Agents to purchase such number of Common Shares as is equal to 6% of the number of Units sold in the Offering, on the same terms as the Warrants.
The Agents have been granted an over-allotment option (the "Over-Allotment Option") exercisable, in whole or in part, within 30 days from the closing of the Offering, to sell up to an additional 15% of the number of Units offered pursuant to the Offering on the same terms as the Units, to cover over-allotments and for market stabilization purposes.
The gross proceeds of the Offering will be used towards the Company's Tepal property in Michoacán, Mexico, Libertad property in Sonora State, Mexico and general working capital purposes.
Geologix Explorations Inc. is a mineral exploration company focused on acquiring, exploring and developing mineral properties in North and South America.
ON BEHALF OF THE BOARD OF DIRECTORS
Dunham L. Craig
President and CEO
THIS PRESS RELEASE, PROVIDED PURSUANT TO APPLICABLE CANADIAN REQUIREMENTS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBE HEREIN. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS ABSENT REGISTRATION OR APPLICABLE EXEMPTION FROM REGISTRATION REQUIREMENTS. |
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