Vantex Resources Ltd. announces that it will increase the previously announced $1,700,000 financing, to a maximum of $2,100,000 due to increased investor demand.
Vantex has therefore entered into an amended agreement with Jones, Gable & Company Limited (“Jones, Gable”) in respect of a brokered private placement financing consisting of up to 2,100 units (the “Units”) at a purchase price of $1,000 per Unit to raise gross flow-through proceeds of up to $2,100,000 (the “Private Placement”) on a commercially reasonable effort agency basis.
The Units will consist of eight (8,000) flow-through common shares at a price of $01.0 per share, two thousand (2,000) common shares at a price of $0.10 per share and five thousand (5,000) common share purchase warrant. Each whole warrant will entitle the holder to purchase one additional common share in the capital of the Company for a period of twelve months from the date of issuance, at a purchase price of $0.15 per share.
Proceeds of the Units will be used for general working capital purposes and to incur general exploration expenses in Quebec. The expenses will constitute Canadian exploration expenses and flow-through mining expenditures (as defined in the Income Tax Act (Canada)), which can be renounced to purchasers for the 2010 taxation year. The securities issued will be subject to a hold period of four months and one day.
Proceeds of the Private Placement will be used for the development of the Galloway-Pitchvein area. The Private Placement will be subject to approval by the TSX Venture Exchange.