VANCOUVER, BRITISH COLUMBIA, Jun 20, 2012 (MARKETWIRE via COMTEX) — Guerrero Exploration Inc. (“Guerrero” or the “Corporation”) (tsx venture:GEX) (frankfurt:2GU) announces that it has, subject to regualtory approval, amended the terms of its previously announced non-brokered private placement of up to $250,000 by issuing 5,000,000 units (“Units”) at $0.05 each by amending the terms of the warrants being offered.
Each Unit consists of one common share and one common share purchase warrant. Each warrant is exercisable for 5 years from closing at an exercise price of $0.10 per common share, subject to acceleration in the event the Corporation disseminates a press release advising that its shares have traded on the TSX Venture Exchange at a price per share greater than $0.30 for 10 consecutive trading days (including days where no shares are actually traded), in which case the warrants shall expire, without further notice, on the 31st day following the issuance of the press release. Notwithstanding the foregoing, in no event shall the Corporation be entitled to issue such a press release within four months of the date of closing. The Corporation plans to use the proceeds from this financing for general working capital and exploration. Guerrero may pay finder’s fees to those assisting it in completing this financing in the amount of 8% cash and 8% finder’s warrants, each such finder’s warrant entitling the holder to subscribe for one share for $0.10 for a period of 12 months.
The Corporation’s recently announced proposed transaction with Riverside Resources Inc. contains penalty provisions in the event that a share consolidation occurs within 1 year of closing of that transaction. That transaction is subject to regulatory and shareholder approvals.
In addition, the Corporation has, subject to regulatory approval, extended certain of its outstanding warrants for an additional year. 3,333,334 warrants exercisable at $0.30 will now expire on July 19, 2013 and 2,500,000 warrants exercisable at $0.30 will now expire on February 15, 2014.
About Guerrero Exploration Inc.
Guerrero is committed to a long term business strategy designed to achieve optimal levels of profitability and shareholder value. Guerrero is a Canadian based exploration mining company with a focus on the high yielding Mexican copper, gold and silver mining area known as the Southern Mexican Gold Belt and the Sierra Madre Occidental Belt. The Corporation’s common shares trade on the TSX Venture Exchange under the symbol “GEX”. For more information, please visit www.grxpl.com or contact investor relations.
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.
Guerrero Exploration Inc.
President and Chief Executive Officer
604.685.0088 Ext. 229
Guerrero Exploration Inc.
604.685.0088 Ext. 228