TSX-V: TXR
Frankfurt: TX0
VANCOUVER, May 8, 2013 /PRNewswire/ - TerraX Minerals Inc.
(TSX.V: TXR; Frankfurt: TX0) has completed an initial
closing of 6,786,085 units at $0.20
per share of its previously announced non-brokered private
placement (see our news release of April 4,
2013) for gross proceeds of $1,357,217. Each unit consists of one
common share and one half of one share purchase warrant, with each
full warrant entitling the holder to purchase an additional common
share at an exercise price of $0.30
per share until May 8, 2016.
The shares and any shares acquired on the exercise of warrants will
be subject to a hold period expiring on September 9, 2013. Finder's fees of
$21,480 were paid with respect to
this placement along with the issuance of 109,200 finders warrants
exercisable at $0.30 until
May 8, 2016. Insiders of
TerraX acquired 250,000 units.
Virginia Mines Inc. (TSX:VGQ) has purchased
3,617,085 units of this private placement for net proceeds to
Terrax of $723,417. Should
TerraX conduct a subsequent private placement of units before
May 17, 2013, Virginia has agreed to
purchase such number of additional units as to allow it to maintain
a holding of 9.9% of the issued and outstanding common shares of
TerraX, up to a maximum aggregate amount of $800,000. The net proceeds of this private
placement will be used to fund the upcoming 2013 exploration
program on TerraX's wholly-owned Northbelt gold property in the
Northwest Territories, 15 km from
Yellowknife.
TerraX also advises that it has entered into a
definitive royalty option agreement with Virginia, whereby Virginia
has been granted an option to acquire a 2% net smelter returns
royalty on the Northbelt property (see our news release of
April 4, 2013). Virginia may exercise
the option by payment of $2,000,000
within 3 months following commencement of production. In
consideration of granting the option, TerraX received 20,000 common
shares of Virginia at a deemed price of $10.00 per share for aggregate consideration of
$200,000.
Joe Campbell, P.
Geo, President of Terrax, states, "Terrax is very pleased to close
the first tranche of this private placement which was completed
during a difficult time in global equity and metal markets, and the
junior mining sector in particular, and provides sufficient funding
for our 2013 exploration programs at Northbelt, including drilling
on multiple previously recognized gold bearing targets."
The Northbelt gold property consists of 121
mineral leases totaling 8,802 acres (3,562 hectares) and covers
approximately 13 km of strike along the prolific Yellowknife belt, 15 km north of the city of
Yellowknife. The southern part of
the property is accessible by road, and the remainder is accessible
by all-terrain vehicles. Northbelt is situated on the northern
strike continuation of the Yellowknife gold camp, immediately west of the
major break controlling gold mineralization within the camp. This
spatial location is host to all known gold deposits in the
Yellowknife camp, including the
past-producing 7.6 Moz Giant and the 5.5 Moz Con mines. The
property is host to multiple shears that are the recognized hosts
for gold deposits in the Yellowknife camp and it contains innumerable
gold showings.
On behalf of the Board of Directors
"STUART ROGERS"
Stuart Rogers
Director
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.
This news release contains forward-looking
information, which involves known and unknown risks, uncertainties
and other factors that may cause actual events to differ materially
from current expectation. Important factors - including the
availability of funds, the results of financing efforts, the
completion of due diligence and the results of exploration
activities - that could cause actual results to differ materially
from the Company's expectations are disclosed in the Company's
documents filed from time to time on SEDAR (see www.sedar.com).
Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release. The company disclaims any intention or obligation,
except to the extent required by law, to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
SOURCE TerraX Minerals Inc.