The Company is relying on exemptions from the prospectus requirements found in section 2.14 of National Instrument 45-106 and applicable securities laws to issue the shares. The common shares issued to the creditors will be subject to a four month hold period.
In addition to the settlement of debt, the Company has closed a non-brokered private placement of 10,277,315 units at a price of $0.05 for gross proceeds of $513,866. Each unit consists of one common share and one half of a share purchase warrant with each whole warrant exercisable at $0.10 per warrant share for a period of one year from closing. The securities issued pursuant to the private placement are subject to a four month regulatory hold period.
Pasinex Resources President and CEO, Steve Williams, stated:
We are delighted to conclude 2015 with a stronger balance sheet and some funds for the Company’s general and administrative expenses. The Pinargozu Mine is performing better than anticipated with production now at 60 tons per day of high grade DSO zinc mineral material. We appreciate the ongoing support of our board of directors and key shareholders during one of the most challenging years for the mining industry. The future looks bright and we look forward to communicating further progress in 2016.