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Completes Final Two Tranches of $5 Million Private Placement
May 28, 2009 12:35PM
May 28, 2009
Genco Completes Final Two Tranches of $5 Million Private Placement
VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 28, 2009) -
NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OF AMERICA
Genco Resources Ltd. (TSX:GGC) is pleased to report it has completed the second and third tranches of its fully subscribed private placement by issuing 5,166,668 units at a price of CAD $0.24 per unit for gross proceeds of CAD $1.24 Million. Each unit consisted of one common share and one warrant to purchase a further share for CAD $0.35 for a period of three years. Following completion of all three tranches, a total of 20,799,668 units have been issued for gross proceeds of CAD $4,991,920. The proceeds from the financing will be used for general working capital purposes, and for further development of the Company's projects in Mexico.
Casimir Capital L.P. of New York, NY acted as agent in each tranche of the placement. Casimir was paid a fee of CAD $99,200 for the last two tranches (8% of the proceeds) and issued 258,334 broker's warrants (5% of the number of units sold). Each broker warrant is exercisable to purchase one common share at CAD $0.35 for a period of three years.
As part of a 'gypsy swap' carried out in conjunction with the third tranche, the wife of James R. Anderson, one of Genco's Co-Chairmen, purchased CAD $240,000 worth of units. Mrs. Anderson had previously sold 1,000,000 common shares from her personal shareholdings. In consideration for the purchase of such shares by an investor, Mrs. Anderson delivered 500,000 share purchase warrants to such investor from the units acquired.