HALIFAX, NOVA SCOTIA / March 10 2014 / Greg Isenor, President and CEO of Merrex Gold Inc., ("Merrex") (TSX Venture: MXI) announces:
Share Exchange Agreement with Global Resources Investments Trust Closes
Merrex has closed its C$1,500,000 arm's length share exchange financing with London-based investment fund Global Resources Investments Trust plc. ("GRIT").
The Company has issued 30,000,000 common shares of Merrex at C$0.05 per common share in exchange for 813,450 ordinary GRIT shares at ?1.00 per share. The Merrex shares are subject to a four-month hold period expiring July 8, 2014. The GRIT shares are free trading on the London Stock Exchange.
The Company will now seek to sell the GRIT Shares through the facilities of the London Stock Exchange. During the first six months, all sales of GRIT Shares will be arranged by GRIT. While the Company will seek to maximize the proceeds it receives from the sale of its GRIT Shares, there is no assurance as to the timing of disposition or the amount that will be realized.
Closing of this transaction significantly improves the Company's working capital.
About Global Resources Investments Trust
GRIT was established to exploit investment opportunities in the junior mining and natural resources sectors worldwide. Its investment objective is to generate medium and long-term capital growth. GRIT has conducted share exchange transactions with 41 junior resource companies (32 headquartered in Canada), acquiring an initial portfolio of their securities in exchange for 39,520,012 ordinary shares having a deemed value of ?39,520,012 (approximately C$73,250,000)
The GRIT Shares were distributed pursuant to a prospectus published by GRIT in the UK on February 28, 2014. GRIT's application to list its ordinary shares on the premium listing segment of the Official List and to trade on the London Stock Exchange's Main Market became effective March 7, 2014. The Main Market is the London Stock Exchange's flagship market for larger, more established companies, and is the world's most international market for the trading of equity, debt and other securities with over 2,600 listed companies from 60 countries across 40 sectors, including many of the world's largest, most successful and most dynamic companies.
GRIT's distribution of the GRIT Shares to the Company and other Canadian-based issuers was also made pursuant to a Discretionary Exemption Order granted by the Ontario and British Columbia Securities Commissions November 13, 2013.
About Merrex's Siribaya Gold Project
The Siribaya Gold Project is a 50/50 joint Merrex-IAMGOLD advanced-stage gold exploration project in West Mali comprised of approximately 910 square kilometres of gold-prolific exploration permits and permit applications pending. Exploration of the Siribaya Gold Project is conducted under a joint management committee. Expenditures to date on the Siribaya Project total approximately $37 million.
The Siribaya Gold Project presently hosts a NI 43-101 compliant gold resource estimated at 303,900 ounces grading 2.34 g/t Indicated, and 301,400 ounces grading 2.17 g/t Inferred (July 31, 2012 ACA Howe International Limited); the deposit areas are open to the north, south and at depth. Numerous other gold-anomalous target areas have been identified by geochemistry and require drilling.
Gregory P. Isenor, P. Geo., is the Qualified Person as defined under NI 43-101 who has reviewed and is responsible for the technical information presented in this news release.
Merrex is primarily a West African focused gold exploration company with experienced management, a solid exploration team, a prominent gold-producer as a partner and an expanding gold resource ... a winning combination.
For further details about the Company's exploration activities or to view the most recent corporate presentation visit Merrex's website at www.merrexgold.com.
To be added to Merrex's email contact list please email your request to firstname.lastname@example.org.
On Behalf of the Board
Gregory Isenor, P.Geo.
President & CEO
Merrex Gold Inc.
Suite 802, 1550 Bedford Highway, Bedford, NS B4A 1E6
Tel.: (902) 832-5555 Fax: (902) 832-2223
This press release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future exploration drilling, exploration activities and events or developments that the Company expects, are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. In particular there is no assurance that the Company will realize at least ?1.00 per GRIT Share upon the sale thereof, or that the Company will realize proceeds from the sale of the GRIT Shares in a timely manner.
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.
Release ID: 35548