/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE
SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES/
KELOWNA, BC, May 20, 2016 /CNW/ - Georox Resources Inc.
("Georox" or the "Corporation") (GXR: TSX-V;
OF6A:FRA) is pleased to announce the closing of the first tranche
of its previously announced non-brokered private placement (the
"Private Placement") resulting in the aggregate gross
proceeds of approximately $196,000. A
total of 3,266,667 units ("Units") were issued at a price of
$0.06 per Unit, with each Unit
consisting of one (1) common share in the capital of the
Corporation ("Common Share") and one (1) Common Share
purchase warrant. Each whole warrant will entitle the holder to
acquire one (1) Common Share at a price of $0.12 for a period to and including April 30, 2018. The securities issued pursuant to
the Private Placement are subject to a four-month hold period.
The Private Placement proceeds will be used for current general
payables, general corporate purposes and expenditures related to
the optimization of production in its Red
Earth property. The closing of the Private Placement is
subject to any and all required regulatory approvals, including
approval of the TSX Venture Exchange.
About Georox
The Corporation currently produces approximately 140 boepd of
which 75% is light oil, 24% is heavy oil and 1% is gas.
Production volumes are commonly expressed on a barrel of oil
equivalent ("BOE") basis whereby natural gas volumes are converted
at a ratio of six thousand cubic feet to one barrel of oil.
The intention is to convert oil and natural gas measurement units
into one basis for improved analysis of results and comparisons
with other industry participants. The term BOE may be
misleading, particularly if used in isolation. The conversion
ratio is based on an energy equivalent method and does not
represent an economic value equivalency at the wellhead.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements relating
to the future operations of the Corporation and other statements
that are not historical facts. Forward-looking statements are often
identified by terms such as "will", "may", "should", "anticipate",
"expects" and similar expressions. All statements other than
statements of historical fact, included in this release, including,
without limitation, statements regarding future plans and
objectives of the Corporation, are forward looking statements that
involve risks and uncertainties. There can be no assurance
that such statements will prove to be accurate and actual results
and future events could differ materially from those anticipated in
such statements. More particularly, it contains
forward-looking statements concerning the use of proceeds from the
Private Placement.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy any of the Units in the United States. The Units (or constituent
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.
Neither the TSXV nor its Regulation Services Provider (as
that term is defined in the policies of the TSXV) accepts
responsibility for the adequacy or accuracy of this
release.
SOURCE Georox Resources Inc.