From the Wires
Canamex Resources Announces Further Financing from Hecla Mining Company to Maintain its Position
By: Marketwired .
Dec. 18, 2012 12:31 PM
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 12/18/12 -- Canamex Resources Corp. ("Canamex" or the "Company") (TSX VENTURE:CSQ)(OTCQX:CNMXF)(FRANKFURT:CX6) announces that pursuant to the terms of an Ancillary Rights Agreement with Hecla Canada Ltd. ("Hecla"), a wholly owned subsidiary of Hecla Mining Company, Hecla has subscribed for an additional 141,911 common shares (the "Shares") of the Company at $0.15 per share for gross proceeds of $21,286.65 in order to maintain its percentage interest in Canamex (refer to News Releases November 19 and 21, 2012 for particulars of the Ancillary Rights Agreement and prior financing with Hecla). Hecla's subscription for the Shares was triggered by the recent issuance of a total of 1,200,000 shares from the exercise, at a price of $0.15 per share, of share purchase warrants during the period November 21, 2012 to December 11, 2012.
The Shares, when issued, will be subject to a statutory four month hold period in Canada. However, Hecla has agreed that it will be restricted from selling the Shares for a period of 12 months following closing of the equity financing between Canamex and Hecla which occurred on November 21, 2012, except as may otherwise be approved by Canamex or in relation to any takeover bid made by a third party not acting in concert with Hecla.
As Hecla is an insider of the Company, the issuance of the Shares will constitute a related party transaction under applicable Canadian securities laws (the "Related Party Transaction"). All of the independent directors of the Company, acting in good faith, have determined that the fair market value of the securities being issued and the consideration paid is reasonable and, as the value of the Related Party Transaction is less than 25% of the Company's market capitalization, the transaction is exempt from the formal valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions.
This financing is subject to receipt of acceptance by the TSX Venture Exchange. A further News Release will be disseminated on closing.
ON BEHALF OF THE BOARD
Robert Kramer, CEO and Director
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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