Oremex Silver Announces Entering Into Committed Equity Facility Agreement
TORONTO, ONTARIO--(Marketwire - March 15, 2013) -
NOT FOR DISTRIBUTION TO UNITED STATES WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
Oremex Silver Inc. ("Oremex" or the "Company") (TSX VENTURE:OAG)(OTCQX:ORAGF)(FRANKFURT:OSI) announces that it has entered into a committed equity facility agreement (the "Agreement") with an institutional investor (the "Investor") for an equity investment of up to $5 million (the "Equity Facility") over the course of a three (3) year period. The issue and sale of common shares of the Company ("Shares") under the Equity Facility is subject to regulatory approval, including the approval of the TSX Venture Exchange.
Mr. John Carlesso, Executive Chairman, commented that "the Equity Facility provides dedicated capital that can be accessed on an as-needed basis. This method allows the Company to minimize dilution of its share capital while ensuring the stability to maintain its corporate development objectives over an extended period of time."
Pursuant to the terms of the Agreement, at any time during the three (3) year period, the Company can, in its discretion, require the Investor to purchase Shares in an amount not to exceed a purchase price of CAD$200,000 per advance. The timing of any drawdown is at the Company's sole discretion and is not subject to any minimum or mandatory advance(s) or non-usage fee(s).
Pursuant to the Agreement, the price per Share in connection with each advance under the Equity Facility will be set at a 10% discount to market, subject to regulatory approval. Implementation of the Equity Facility and the contemplated distribution of Shares to the Investor is subject to qualification under a short-form prospectus and receipt of all other required regulatory approvals and exemptive relief from securities regulators from certain securities law requirements. If the securities regulators do not accept the form of requested relief, the Equity Facility will be amended or terminated. In the case of each advance, a separate pricing supplement will be filed describing the terms of the particular drawdown. A finder's fee equal to 1% of the value of the Equity Facility will be payable in common shares and, thereafter, a cash amount equal to 2% and an amount payable in common shares and equal to 1% of the amounts drawn under the Equity Facility from time to time, will be paid to an arm's length party in connection with this financing.
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