/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE
SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES/
KELOWNA,
BC, July 4, 2016 /CNW/
- Georox Resources Inc. ("Georox" or the
"Corporation") (GXR: TSX-V; OF6A:FRA) is pleased to announce
the closing of the second tranche of its previously announced
non-brokered private placement of up to 11,666,667 Units 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 (the "Private Placement"). Each 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. A total of
3,431,666 Units were issued in this second tranche for aggregate
gross proceeds of approximately $205,900. The securities issued pursuant to the
Private Placement are subject to a four-month hold period. The
aggregate number of Units issued in the first and second tranches
of the Private Placement are 6,598,333 Units for gross proceeds of
$401,900.
The Corporation anticipates a further closing of
this Private Placement in the next several weeks. The TSX
Venture Exchange has approved an extension of the deadline to
complete the Private Placement to August 4,
2016.
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.