RETRANSMISSION: BMEX Announces Private Placement of up to $9,550,000 of Units and Flow-Through Units

Vancouver, British Columbia--(Newsfile Corp. - September 8, 2020) -  BMEX Gold Inc. (TSXV: BMEX) ("BMEX" or the "Company") is pleased to announce that it has entered into an agreement with StephenAvenue Securities Inc. in connection with a "best efforts" private placement of units of the Company (each, a "Unit") at a price of $0.30 per Unit and flow-through units of the Company (each, a "FT Unit" and together with the Units, the "Offered Securities") at a price of $0.5325 for aggregate gross proceeds of up to $9,550,000 (the "Offering").

Each Unit will consist of one common share ("Common Share") in the capital of the Company and one-half of one Common Share purchase warrant (each whole warrant a "Warrant") of the Company. Each whole Warrant will entitle the holder thereof to acquire one additional Common Share at an exercise price of $0.50 for a period of eighteen (18) months following the closing date ("Closing Date") of the Offering. Each FT Unit will consist of one flow-through common share ("FT Share") (which will qualify as "flow-through shares" within the meaning of subsection 66(15) of the Income Tax Act (Canada)) and one-half of one Warrant. Each whole Warrant will entitle the holder thereof to acquire one additional Common Share, to be issued on a non-flow-through basis, at an exercise price of $0.50 for a period of eighteen months following the Closing Date.

As consideration for the services provided by the Agent in connection with the Offering, the Company will pay: (i) a cash commission of 7% of the gross proceeds of the Offering; and (ii) broker warrants ("Broker Warrants") in an amount equal to 7% of the number of Offered Securities issued pursuant to the Offering, exercisable at a price of $0.30 per Common Share for a period of eighteen (18) months following the Closing Date. The Agent is working with PearTree Securities Inc. as gifting arrangement promoter in respect of the sale of the FT Units.

All securities issued pursuant to the Offering are subject to a statutory hold period of four months from the date of issuance in accordance with applicable securities legislation. The net proceeds from the sale of the Units will be used for general working capital. The gross proceeds from the sale of the FT Units will be used to explore the Company's recently acquired King Tut and Dunlop Bay projects located in Quebec, Canada.

The Offering is anticipated to close on or about September 30, 2020, or such other date as agreed between the Company and the Agent, and is subject to certain closing conditions including, but not limited to, the receipt of all necessary regulatory and other approvals including the approval of the TSX Venture Exchange.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

About BMEX Gold Inc.

BMEX Gold Inc. is a junior Canadian mining exploration company with the primary objective to acquire, explore, and develop viable gold and base metal projects in the mining-friendly jurisdictions of Quebec, Canada. BMEX is currently fully focused on its two projects:

  • King Tut Project is a wholly owned project that consists of 120 contiguous claims on 5206 hectares
  • Dunlop Bay Project is a wholly owned project that consists of 76 mineral claims that cover 4,226 hectares.

BMEX common shares trade under the symbol "BMEX" on the TSX-V and under the symbol "8M0" on the Frankfurt Exchange.

On behalf of the Board of Directors, BMEX Gold Inc.

Amrik Virk, Chief Executive Officer/Director

For more information, please contact:

Dylan Sidoo
Tel: (604) 423-4499
Email: info@Bmexgold.com

Peartree Securities Inc
110 Eglington Avenue West, Suite 400. Toronto Ontario M4R 1A3
T 416 613 3848 F 647 436 7460
Email: info@peartreecanada.com

StephenAvenue Securities Inc.
402- 217 Queen St. W.; Toronto Ontario M5V 0R2
Tel 416 479 4478 Toll Free 1 844 540 2018
Fax 416 866 4141
Email: dcappuccitti@stephenavenue.com

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. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

This news release contains forward-looking statements. All statements, other than of historical facts, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future including, without limitation, the completion of the Offering as described herein are forward-looking statements. Forward-looking statements are generally identifiable by use of the words "will", "should", "continue", "expect", "anticipate", "estimate", "believe", "intend", "to earn", "to have', "plan" or "project" or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company's ability to control or predict, that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, failure to obtain any necessary regulatory approvals, the termination of any agreement governing the Offering, general business and economic conditions, changes in world gold markets, sufficient labour and equipment being available, changes in laws and permitting requirements, unanticipated weather changes, title disputes and claims, environmental risks as well as those risks identified in the Company's annual Management's Discussion and Analysis. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described and accordingly, readers should not place undue reliance on forward-looking statements. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements except as otherwise required by applicable law.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/63376

info