Geologix Explorations Inc. intends to carry out a private placement of up to 10 million common shares at a price of 10 cents per share for gross proceeds of up to $1-million. Geologix may increase the size of the placement if warranted and priority in the placement will be given to existing shareholders. Eligible finders will be paid a 5-per-cent cash fee.
Geologix will utilize the net proceeds from this transaction to continue work on a feasibility study of the company's Tepal project, to advance related permitting and for general working capital purposes.
"This private placement will allow us to continue to move our promising Tepal project forward at its current pace," stated Dunham Craig, president and chief executive officer of Geologix. "We anticipate completing a feasibility study for Tepal later this year, continuing the momentum created by the positive prefeasibility study results we announced in March. We also continue to make progress towards securing financing for the project's preproduction capital cost of $354-million. I look forward to communicating with shareholders about both these major milestones in the near future."