TerraX Minerals Inc. (TSX-V: TXR; Frankfurt: TXO) has completed an initial closing of 2,261,812 units at $0.45 per unit for gross proceeds of $1,017,815. Each unit will consist of one common share and one-half of one share purchase warrant, with each full warrant entitling the holder to purchase an additional common share at an exercise price of $0.50 per share until December 20, 2015. The shares and any shares acquired on the exercise of warrants will be subject to a hold period expiring on April 21, 2014. Finder's fees of $25,773 were paid with respect to a portion of this placement along with the issuance of 56,574 finders warrants exercisable at $0.50 until December 20, 2015.
Virginia Mines Inc. (TSX: VGQ), a current shareholder of TerraX, purchased 555,556 units of this private placement for net proceeds to TerraX of $250,000. In addition, over a third of this private placement was subscribed for by investors and business persons active in the Yellowknife community, providing us with tangible evidence of the local support for TerraX's exploration at its Northbelt gold project, located immediately north of Yellowknife.
The net proceeds of this private placement will be used to finance drilling planned for early 2014 at Northbelt, which encompasses 3,562 hectares on the prolific Yellowknife belt, 15 km north of the city of Yellowknife, and covers 13 km of strike on the northern extension of the geology that contained the Giant (7.6 Moz) and Con (5.5 Moz) gold mines. The Northbelt property is host to multiple shears that are the recognized hosts for gold deposits in the Yellowknife camp and it contains innumerable gold showings.
On behalf of the Board of Directors
Contact: Paradox Public Relations