VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 22, 2012) - Tirex Resources Ltd. ("Tirex") (TSX VENTURE:TXX) is pleased to announce that it has closed a first tranche of the equity financing that was announced on November 5th, 2012.
The financing is being conducted as a non-brokered private placement at $0.70 per share.
Tirex has closed on a first tranche of this financing, for gross proceeds of $1,208,120 through the sale of 1,725,886 common shares at $0.70 per share.
In addition to the funds being raised in this private placement, Tirex has approximately $1,910,000 undrawn under its facility with the European Bank for Reconstruction and Development ("EBRD"), a facility described in previous Tirex News Releases. Tirex is also pleased to announce that it has just applied to the EBRD to draw down this $1,910,000.
As detailed in previous News Releases, Tirex's transition into production is fully financed via a unique Mining Partnership Agreement with no corresponding share dilution to Tirex shareholders (see previous Tirex News Releases for details as to this Mining Partnership).
The proceeds from the current ongoing private placement financing are earmarked for exploration targeting new discoveries in areas of Mirdita outside of the Mining Partnership.
On October 29th, 2012, Tirex announced that Albania's Ministry of Economy, Trade and Energy had approved the company's applications to transition six specific areas of the company's Mirdita VMS District from exploration licenses into 25 year mining exploitation licenses. Tirex will focus concurrently on both the company's planned transition into production and on exploration in areas of the Mirdita District not yet exposed to large scale, modern, systematic exploration.
Finder's fees payable in connection with the above are $57,820 and 118,000 finders warrants exercisable for 2 years at $0.70 per share. All shares sold under the private placement, and the finders' warrants, will be subject to resale restrictions expiring four months from the date of issue.
On Behalf of Management,
Bryan J. Slusarchuk, Chief Executive Officer
Forward-Looking Statements. This News Release may contain certain "forward-looking" statements and information relating to Tirex. Such statements include but are not limited to statements about the exploitation licenses, the Partnership Agreement, the production arrangements and the timing of mine development, and production. Often forward-looking statements or information include words such as "plans", expects", "intends", "anticipates", "estimates" "forecasts", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or will be taken occur or be achieved. Although forward-looking statements and information contained in this release are based on the beliefs of Tirex management, which are considered to be reasonable, as well as assumptions made by and information currently available to Tirex management, there is no assurance that the forward-looking statements or information will prove to be accurate. The forward-looking statements and information contained in this release are subject to current risks, uncertainties and assumptions related to certain factors including, without limitations, obtaining all necessary approvals, feasibility of mine and plant development, exploration and development risks, expenditure and financing requirements, title matters, operating hazards, metal prices, political and economic factors, competitive factors, general economic conditions, relationships with vendors and strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices, and one-time events as well as risks, uncertainties and other factors discussed in our quarterly and annual and interim management's discussion and analysis. In this instance, there is no assurance any or all of the EBRD loan facility will be drawn down by the Company, or that any additional amount of the private placement will be sold. Should any one or more of these risks or uncertainties materialize or change, or should any underlying assumptions prove incorrect, actual results may vary materially from the forward-looking statements and information described herein. Accordingly, readers should not place undue reliance on forward-looking statements and information contained in this release. We undertake no obligation to update forward-looking statements or information except as required by law.