Platinex four-million-FT-share private placement

2009-01-28 16:18 ET - Private Placement

The TSX Venture Exchange has accepted for filing documentation with respect to a non-brokered private placement announced Dec. 31, 2008.

Number of shares: Four million flow-through shares

Purchase price: 10 cents per share

Warrants: Four million share purchase warrants to purchase four million shares

Warrant exercise price: 35 cents for a one-year period; 45 cents in the second year

Hidden placees: Four

Finder's fee: A total of $20,000 in cash and 400,000 finder's warrants payable to First Canadian Securities, Toronto Ont. Each finder's warrant entitles the holder to acquire one unit at 10 cents for a two-year period.

Platinex Inc. has raised $447,553 in gross proceeds through two private placements of Platinex securities.

MineralFields private placement

Platinex has completed a private placement of $400,000 through the sale of four million flow-through units at 10 cents each to the MineralFields Group. Each FT unit consists of one flow-through common share and one warrant. Each warrant may be exercised for one non-flow-through common share at 35 cents per share on or before Dec. 30, 2009, and thereafter at 45 cents per share on or before Dec. 30, 2010. The securities forming the FT units are subject to a hold period which expires on May 1, 2009.

Platinex has paid a 5-per-cent cash commission to the finder, Limited Market Dealer Inc., in respect of the sale of FT units, and Platinex has issued finder options granting the finder the right to purchase 400,000 units (the LMD units) for 10 cents per unit on or before Dec. 30, 2009. The terms of the LMD units are the same as the FT units, except that the common share forming part of an LMD unit is a non-flow-through common share. The LMD units are subject to a hold period which expires on May 1, 2009.

"We are very pleased to be renewing our relationship with MineralFields Group," said Jim Trusler, president of Platinex. "This is an important milestone in the growth of Platinex Inc. and we look forward to working with MineralFields Group as we drill test the Herrick gold deposit on our Shining Tree gold property."

Additional private placement

Platinex has completed a separate private placement to raise $47,553 in gross proceeds through the private placement of flow-through common shares and non-flow-through common shares. There were 120,000 flow-through common shares issued for 12.5 cents each, and 325,525 non-flow-though common shares were issued for 10 cents per share. The securities forming the flow-through common shares and the non-flow-through common shares are subject to a hold period which expires on May 1, 2009.

Giving consideration to the private placements, there are currently 34,200,406 shares issued.

New director

Platinex also announced that R. Bruce Reilly, BComm, CA, has been appointed to the board of directors. Mr. Reilly brings over 20 years of senior management and public accounting expertise to Platinex.

In addition to more than eight years as the chief financial officer of Platinex, Mr. Reilly also serves as a director for Partner Jet Corp. and operates a successful public accounting firm in the Greater Toronto Area with a specialty in public companies. Mr. Reilly is a University of Toronto graduate (1983), a member of the Ontario Institute of Chartered Accountants (1985) and an Arthur Andersen & Co. alumnus.

"His extensive experience in management, and in accounting and tax issues inherent to exploration stage mining industry are valuable components of the Platinex team," added Mr. Trusler.

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