Guerrero Exploration announces $1.5 mln private placement financing

Guerrero Exploration (CVE:GEX) said Monday it has entered into a brokered private placement financing agreement worth $1.5 million.
The gold miner said that it plans to sell 10 million units priced at 15 cents each, with Euro Pacific Canada acting as the agent.
Each unit consists of one common share and one-half common share purchase warrant. Each whole warrant gives holders a right to buy one extra share for 25 cents each, for 12-months after the offering's closing.
Additionally, Guerrero has granted Euro Pacific an option to sell up to 15 percent extra units under the same terms, for an additional $225,000 in proceeds.
Euro Pacific will get up to eight percent of the gross proceeds of the placement and will also receive broker’s warrants, exercisable for a period of 24 months, after closing.
Guerrero said the new funds will go toward advancing its Mexican properties and for general corporate purposes.
The company, which recently attended the Guerrero Gold Belt conference in Toronto, said the offering will have two closings. The first is slated to close on March 16 and the second will close on March 28.
Earlier this month, the company said it applied for the 86,205-hectare Olinala property.
The property, which is located in Guerrero state, Mexico, lies to the south of Cerro Dolores, a poly-metallic project owned by Goldcorp (TSE:G).
Toronto-based Guerrero said the Olinala property overlaps two volcanic belts with the potential for volcanogenic massive sulphide deposits.
Guerrero Exploration is a Canadian mineral exploration company with a focus on Mexican gold, copper and silver mining areas known as the Guerrero Gold Belt, Southern Mexican Gold Belt and the Sierra Madre Occidental Belt.
The Guerrero gold belt (GGB) is located in the state of Guerrero, Mexico and has produced over 15 million ounces of gold to date. It extends for at least 55 kilometres from the southeast to the northwest and remains open to exploration in all directions.
Guerrero's Cerro Azul copper gold project, along with the Cotapec gold and silver project cover 81,370 hectares of the Guerrero Gold Belt.
The Cerro Azul copper gold project covers 26,000 hectares near the GGB with a third property, the Chapalota project, which is located outside of the GGB in the Sierra Madre Occidental Region of Mexico.
Guerrero's Coatapec project is located directly north of Newstrike's (CVE:NR) Ana Paula project, showing similar geological trends to Ana Paula and lying within approximately 10 kilometres of Goldcorp’s Los Filos gold mine.
In a research report in December, Euro Pacific Canada said that Guerrero Exploration will continue to advance the Cerro Azul and Coatapec projects.