NGEx Resources Inc. (TSX:NGQ) (NASDAQ Stockholm:NGQ), is pleased to report that it has closed the first tranche of its previously announced C$20 million private placement and has issued 19,334,000 common shares at a price of C$1.00 per Common Share for gross proceeds of C$19,334,000, on a non-brokered, private placement basis.  The Company expects to close the balance of the Offering on or before February 4, 2019.  A finders’ fee of 5.00% is payable in connection with a portion of the Offering.

Common Shares sold in the Offering are subject to a hold period of four months plus one day under applicable securities laws in Canada.

The Company plans to use the net proceeds of the Offering towards ongoing work programs in Argentina and Chile, including completing a feasibility study on the Josemaria Project, engineering and exploration studies on the Company’s other projects, repayment of balance drawn on the Company’s debenture credit facility, and for general corporate purposes. 

Two insiders of the Company, directly or indirectly, purchased a total of 12,112,000 Common Shares under the Private Placement, constituting a “related party transaction”, as defined under Multilateral Instrument 61-101. These transactions are exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of any Common Shares issued to nor the consideration paid by such persons would exceed 25% of the Company’s market capitalization. 

As a result of the Common Shares issued pursuant to the closing of the first tranche of the Offering, together with Common Shares issued in connection with a previously announced credit facility and the exercise of stock options under the Company’s stock option plan during the month, the number of issued and outstanding shares of the Company is 247,504,860 common shares with voting rights as at January 31, 2019.

This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein in the U.S., or in any jurisdiction in which such an offer or sale would be unlawful. The securities described herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or any U.S. state securities laws and may not be offered or sold in the U.S. or to the account or benefit of a U.S. person or a person in the U.S. absent registration or an applicable exemption from the registration requirements.

About NGEx

NGEx is a Canadian mineral exploration company with projects in Argentina and Chile. The Company’s shares are listed on the TSX and on Nasdaq Stockholm under the symbol “NGQ”. The Company’s main focus is on advancing the development of its two, large copper/gold deposits, Los Helados and Josemaría, located in Chile’s Region III and adjacent San Juan Province, Argentina. The Company owns a 100% interest in the Josemaría project and is the majority partner and operator for the Los Helados project, subject to a Joint Exploration Agreement with its joint exploration partner in Chile, Pan Pacific Copper.  The Company is also actively seeking new exploration projects and carrying out earlier stage exploration on projects with large scale potential.