Luminex Resources Corp. (TSX-V: LR) is pleased to announce the closing of its previously announced private placement financings (refer to the Company’s press releases dated June 3, 2020 and June 5, 2020) to raise an aggregate of C$13 million. A total of 10,886,000 common shares were sold at a price of C$0.70 per Share under the brokered portion of the Offering, and an additional 7,685,714 Shares were sold at the Offering Price under the non-brokered portion of the Offering. The brokered portion of the Offering was completed through a syndicate of agents led by Haywood Securities Inc., and including PI Financial Corp., Cormark Securities Inc., and Raymond James Ltd.
The Company plans to use the net proceeds from the Offering for the exploration and advancement of the Company’s projects in Ecuador and for general corporate purposes.
The Shares issued under the Offering will be subject to a statutory four month and a day hold period that will expire on October 25, 2020. In connection with the brokered portion of the Offering, the Agents received compensation of C$421,134. In connection with the non-brokered portion of the Offering, finders’ fees of 4% were paid on the proceeds from certain subscribers to Trimark Capital and First Globe Capital International Inc.
Certain related parties of the Company participated in the Offering. The issuance of common shares to related parties is considered to be a related party transaction within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101. The Company has relied on the exemptions from the valuation and minority shareholder approval requirements of MI 61‑101 (and Policy 5.9) as the fair market value of the Shares issued to such persons does not exceed 25% of the Company’s market capitalization.
The Company did not file a material change report more than 21 days before the expected closing of the Offering as the details of the Offering and the participation therein by related parties of the Company were not settled until shortly prior to closing and the Company wished to close on an expedited basis for sound business reasons and in a timeframe consistent with usual market practices for transactions of this nature.
The securities offered pursuant to the Offering have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Luminex Resources
Luminex Resources Corp. is a Vancouver, Canada based precious and base metals exploration and development company focused on gold and copper projects in Ecuador. Luminex’s inferred and indicated mineral resources are located at the Condor Gold-Copper project in Zamora-Chinchipe Province, southeast Ecuador. Luminex also holds a large and highly prospective land package in Ecuador, including the Tarqui and Pegasus projects, which are being co-developed with BHP Group plc and Anglo American respectively.
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We acknowledge the [financial] support of the Government of Canada.