(Not for distribution to USA wire service or for dissemination in the USA)
KELOWNA, BC, July 27, 2011 /PRNewswire/ - Tiex Inc. ("Tiex" or the "Company") TSXV: TIX is pleased to announce it closed on July 26, 2011 a non-brokered private placement of $760,000 with MineralFields Group (the "Private Placement"). The Private Placement consisted of 545,454 units ("Common Units") at a price of $0.11 per Common Unit for gross proceeds of $60,000; and 5,384,614 units ("Flow-Through Units") at a price of $0.13 per Flow-Through Unit for gross proceeds of $700,000. Each Common Unit consists of one common share and one common share purchase warrant, each common share purchase warrant entitling the holder to acquire until July 25, 2013 one common share of the Company at $0.15 per share. Each Flow-Through Unit consists of one common share of the Company issued on a flow-through basis pursuant to the Income Tax Act (Canada) and one-half of one common share purchase warrant, with each whole common share purchase warrant entitling the holder to purchase until July 25, 2013 one common share at a price of $0.15 per share. The Private Placement is subject to final regulatory approval.
In connection with the Private Placement, the Company paid finders' fees to First Canadian Securities, a division of Limited Market Dealer Inc., of $45,600 and 415,104 finder's fee options (of which 38,181 relate to the Common Units sold (the "Common Finder's Option") and 376,923 relate to the Flow-Through Units sold (the "Flow-Through Finder's Option"). Each finder's fee option is exercisable until July 25, 2013 at a price of $0.11 per finder's fee option. Each Common Finder's Option consists of one common share and one common share purchase warrant entitling the holder to purchase until July 25, 2013 one common share at a price of $0.15 per share. Each Flow-Through Finder's Option consists of one common share and one-half of one common share purchase warrant, with each whole common share purchase warrant entitling the holder to purchase until July 25, 2013 one common share at a price of $0.15 per share.
The Common Units, Flow-Through Units, Common Finder's Option, the Flow-Through Finder's Option and the underlying securities are subject to a four month hold period ending November 26, 2011.
MineralFields Group (a division of Pathway Asset Management), based in Toronto, Montreal, Vancouver and Calgary, is a mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnership to investors throughout Canada as well as hard-dollar resource limited partnerships to investors throughout the world. The sector focus is on gold and precious metals, base metals, rare earths and lithium, potash, uranium, oil, coal and gas. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds (including the Pathway Multi Series Funds Inc. corporate-class mutual fund series). Information about MineralFields Group is available at www.mineralfields.com.
First Canadian Securities (a division of Limited Market Dealer Inc.) is active in leading resource financings (both flow-through and hard dollar PIPE financings) on competitive, effective and service-friendly terms, and offers investment banking, mergers and acquisitions, and mining industry consulting, services to resource companies. MineralFields and Pathway have financed several hundred mining and oil and gas exploration companies to date through First Canadian Securities, and have raised over $1 billion in their ten year history.
Ken Faulkner, President and CEO of Tiex, states: "We are pleased to establish a relationship with MineralFields Group and this is an important milestone in the growth of Tiex. We look forward to working with MineralFields as we develop our holdings in the Quesnel Trough area. The funds received on the Private Placement will allow the Company to complete the multi-faceted exploration program on its Gold Creek, Cedar-Louis and Horsefly Properties as announced in the Company's June 27, 2011 news release, and as updated in the Company's July 22, 2011 news release."
About Tiex Inc.
Tiex Inc. is a TSX Venture listed mineral exploration company focused on the exploration of its 95,559 hectare Cariboo Goldfields Project, (including the earn-in option/joint venture agreement with Newmont Canada Corporation announced in the Company's April 27, 2011 news release) located in the historic Quesnel Trough area of central British Columbia, Canada. The property is accessible by highway and logging roads year round. For more information, you can visit the company's website at www.tiexinc.com
ON BEHALF OF THE BOARD OF DIRECTORS
"Kenneth D. Faulkner"
President & CEO
Certain information regarding the Company including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities laws and necessarily involve risks associated with mining exploration and development, volatility of prices, currency fluctuations, imprecision of resource estimates, environmental and permitting risks, access to labour and services, competition from other companies and ability to access sufficient capital. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
SOURCE TIEX Inc.
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