Guerrero Exploration (CVE:GEX) said Wednesday it has amended the terms of its previously announced non-brokered $250,000 financing, extending the expiration of warrants by one year.
The gold explorer plans to issue five million units priced at five
cents each. Each unit will be made up of one common share and one common
share purchase warrant.
Proceeds from the private placement will go toward general working capital and exploration, Guerrero said in a statement.
Today, the company has, subject to regulatory approval, extended certain of its outstanding warrants for an additional year.
The company said 3.33 million warrants that have an exercise price of
30 cents will now expire on July 19, 2013, and another 2.5 million
warrants exercisable at 30 cents are set to expire on February 15, 2014.
Earlier this week, Guerrero announced a deal that will see its partner Riverside Resources (CVE:RRI) become the largest shareholder of the company.
As part of the deal, Guerrero will own 100 per cent interests in the
Cerro Azul and Chapalota projects with Riverside getting $2 million of
Both companies said the transaction will strengthen their
partnership, with Riverside having the chance to increase its management
presence and support through representation on the board of directors
and advisory board.
The proposed transaction has penalty provisions in the event a share
consolidation occurs in one year of closing of the deal, Guerrero said
The Riverside transaction remains subject to regulatory and shareholder approvals.
Cerro Azul is located near the highly productive southwestern Mexico,
Guerrero Gold Belt. The 2011 work program on the 261 square kilometre
property consisted primarily of rock chip and soil samples.
Chapalota is located along the western side of the Sierra Madre Occidental Region of Mexico.
The 91 square km property is 50 km to the south of Silvermex's
Rosario deposit and 70 km to the north of Oro Mining's La Trinidad
deposit. Riverside and Guerrero completed induced polarization as well
as soil surveys that defined six target areas on the project.