Cap-Ex Ventures announces private financing for $10.2 million

Cap-Ex Ventures announced this morning a non-brokered private placement financing for the sale of 12 million units at $0.85 cents per unit for total gross proceeds of $10.2 million. Each unit is to consist of one common share of the company and one share purchase warrant. Each warrant will entitle the holder to purchase one common share of the company at the exercise price of $0.95 for a period of two years. 

The announcement comes right after the company reported positive drilling results from additional two holes, which were completed at the freshly identified Northwest zone that is situated in the Block 103 iron ore property, Quebec.

Forbes & Manhattan, Inc. and its associates have agreed to subscribe for the majority of the financing. Insiders of the Company and other persons have agreed to subscribe for an aggregate of 2,000,000 units. The 2,000,000 units being purchased by Insiders of the Company and other persons are flow-through units (the “Flow-Through Units”) while the remaining 10,000,000 units in the Financing are non flow-through (the “Non Flow-Through Units”). The unit price and warrant exercise price of the Flow-Through Units and the Non Flow-Through Units are the same.

No commissions or finder’s fees are payable on the Financing.

The Company expects to use the proceeds of the financing for further exploration and development of the Company’s Labradorproperties. The proceeds received by the Company on the issue of the Flow-Through Units will be used for exploration expenditures that constitute Canadian exploration expenditures (as defined in the Income Tax Act (Canada)).

In a public statment, the President and CEO Brett Matich said that Cap-Ex plans to use the proceeds of the financing for further exploration and development of the Company’s Labrador properties. The proceeds received by the Company on the issue of the Flow-Through Units will be used for exploration expenditures that constitute Canadian exploration expenditures (as defined in the Income Tax Act (Canada)).

Closing of the financing is expected to occur in two tranches with the first tranche to occur on or about December 20, 2011. All securities issued will be subject to a four month hold period. The financing is subject to a number of conditions, including, without limitation, receipt of approval of the TSX Venture Exchange.

For additional information please visit the company’s website