International Enexco Closes CDN$2.35 Million Non-Brokered Private Placement
November 29 2012 - 1:00PM
Marketwired
International Enexco Ltd. (TSX
VENTURE:IEC)(OTCQX:IEXCF)(FRANKFURT:I6E) (the "Company" or
"Enexco") is pleased to announce that further to its October 12,
and November 16, 2012 news releases announcing a non-brokered
private placement of Units at $0.50 per Unit for gross proceeds of
$2,000,000, the private placement has been oversubscribed for
aggregate proceeds of $2,350,000. All other information from the
news release dated November 16, 2012 remains the same.
Denison Mines Corp. subscribed for 3,600,000 units of the
Company (each a "Unit") at a price of $0.50 per Unit for aggregate
gross proceeds of $1,800,000. If all of Denison's warrants included
in the Units were exercised, Denison would own 5,400,000 shares of
Enexco, which represents approximately 13.90% of the issued and
outstanding shares of Enexco.
The proceeds from the private placement will be used for the
exploration and development of the Contact Copper project in
Nevada, to partially fund the Company's exploration activities on
the Mann Lake uranium project (operated by Cameco Corp.) in
Saskatchewan's Athabasca Basin in 2013 and for general working
capital.
Concurrently with Denison's purchase of Units, Denison and
Enexco also entered into an ancillary rights agreement (the "ARA").
The ARA provides Denison with certain rights, for so long as
Denison holds a minimum 5% interest in the issued and outstanding
shares of Enexco. First, the Company shall cause one Denison
nominee to be appointed to Enexco's Board effective upon the
closing of the private placement, and will nominate one Denison
nominee for election to the Board at any meeting of shareholders
where directors are to be elected. Second, Denison has a
pre-emptive right to maintain its shareholding percentage up to a
maximum of 9.9% (on a partially exercised basis), subject to
regulatory approval, if Enexco issues or proposes to issues any
equity securities. Denison also has the right to subscribe for such
number of shares sufficient to enable Enexco to meet its funding
obligations under the Mann Lake Joint Venture Agreement in the
event of a shortfall. The ARA also provides that Denison has the
right to appoint one individual to Enexco's Technical Committee,
responsible for providing technical input on the exploration and
development plans for the Mann Lake Uranium Project in the
Athabasca Basin in Saskatchewan.
In exchange, Denison has agreed in the ARA to vote its
shareholding in favour of Enexco Management's proposals on matters
of routine business and not to tender its shareholding to any
take-over bid if Enexco's Board has not issued a recommendation in
favour of the same.
Denison Mines Corp. is a uranium exploration and development
company with interests in exploration and development projects in
Saskatchewan, Zambia and Mongolia. As well, Denison has a 22.5%
ownership interest in the McClean Lake uranium mill, located in
northern Saskatchewan, which is one of the world's largest uranium
processing facilities. Denison's exploration project portfolio
includes the world class Phoenix deposit located on its 60% owned
Wheeler River project also in the Athabasca Basin region of
Saskatchewan.
The Company will pay $24,387.50 in finder's fees in connection
with this closing, excluding Denison's subscription. All of the
securities issuable in the placement are subject to a hold period
ending on March 30, 2013.
About International Enexco Ltd.
International Enexco Ltd. is a North American exploration and
development company focused on the feasibility stage Contact Copper
Project in northern Nevada. The Company also pursues gold and
silver exploration in Idaho and Nevada, and is advancing the Mann
Lake Uranium Project located in Saskatchewan's prolific Athabasca
basin. This project is a joint venture with Cameco (52.5%) as
operator and AREVA (17.5%)-two of the world's largest uranium
companies.
On behalf of the Board of Directors, I look forward to keeping
you updated with our corporate developments.
G. Arnold Armstrong, 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. A feasibility study
has not been completed and there is no certainty the disclosed
targets will be reached nor that the proposed operations will be
economically viable. We seek safe harbour.
The TSX Venture Exchange or its Regulation Services Provider
have not reviewed and do not accept responsibility for the adequacy
or accuracy of the contents of this news release, which has been
prepared by management.
Contacts: International Enexco Ltd. Spiros Cacos +1 604 669 8368
+1 604 662 3691 (FAX)info@enexco.ca www.enexco.ca