Vancouver, BC – December 24, 2014 – Geologix Explorations Inc. [TSX: GIX] ("Geologix" or "the Company") is pleased to announce it has completed a private placement with various investors of $599,000 in convertible, unsecured, 10% (interest payable every six months), three year promissory notes. Insiders provided $300,000 of the financing.
The principal due under the promissory notes is convertible into common shares of the Company at $0.036 per share until, and the notes mature on, December 24, 2017. Interest accruing due under the notes is payable only in cash. The Company may repay the notes after six months. Upon receipt of the Company's repayment notification, note holders will have a 10 day period in which to elect to convert the principal amount due under their notes into shares or to receive cash.
Dunham Craig, Geologix's President and CEO, stated: "The Company has determined to strengthen its balance sheet with priority given to existing shareholders who share the same fundamental asset value opinion as management. Our 100% owned Tepal Project continues to be improved through the completion of cornerstone permitting and we are finding that that both federal and state governmental agencies are increasingly supportive of development as a long term stable economic benefit to the local area. In anticipation of improved resource capital markets, we continue to keep the Project asset in a clean and unencumbered condition for when funding conditions and terms are reasonable for the benefit of our shareholders. In the interim, we have substantially reduced our overhead costs and feel we are positioned to continue with the Project in a selective manner well into 2016."
On behalf of the Board of Directors
Dunham Craig, President & CEO
For further information please contact Investor Relations, either by email ([email protected]) or phone (604-428-3664).
Geologix Explorations Inc. is a mineral exploration and development company focused on acquiring, exploring, and developing mineral resource opportunities with the potential to host profitable mining operations. The Company's primary focus is the Tepal Gold-Copper Porphyry Project in Michoacán state, Mexico. On March 19, 2013, the Company announced a Prefeasibility Study for the Project that indicated an 11.5 year mine life with payable production of 1.12 M oz. gold and 503 M lbs. copper, resulting in a post-tax NPV of $421 million at a 5% discount rate. The positive results of this study have led the Company to continue to work towards both completing a Feasibility Study for the Project and arranging the necessary financing to advance the Project to production.
This Press Release may contain statements which constitute 'forward-looking, including statements regarding the plans, intentions, beliefs and current expectations of the Company, its directors, or its officers with respect to the future business activities and operating performance of the Company. The words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions, as they relate to the Company, or its management, are intended to identify such forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future business activities or performance and involve risks and uncertainties, and that the Company's future business activities may differ materially from those in the forward-looking statements as a result of various factors. Such risks, uncertainties and factors are described in the periodic filings with the Canadian securities regulatory authorities, including the Company's Annual Information Form and quarterly and annual Management's Discussion & Analysis, which may be viewed on SEDAR at www.sedar.com. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements.