Shareholders Approve 10:1 Share Consolidation
750 Grand Boulevard North Vancouver, BC V7L 3W4
Tel: 604-924-9376 Fax: 604-924-9371
FOR IMMEDIATE RELEASE (TSX V Symbol: AUX) October 18, 2012
SHAREHOLDERS APPROVE 10:1 SHARE CONSOLIDATION
On September 4, 2012, the Company announced that it proposed a consolidation of its common share capital on the basis of one new share for each 15 old shares, and that an Annual and Special General Meeting had been convened for October 18, 2012 to consider the matter. At the meeting, held today, the shareholders approved a variation of the originally proposed resolution reducing the consolidation ratio from 15:1 to 10:1. The shareholders also then approved the consolidation resolution, as amended. Accordingly, the Company now has shareholder approval to consolidate its authorized and issued common share capital on the basis of one new share for each 10 old shares. As a result of the consolidation, the Company’s existing issued common share capital of 81,591,459 shares will be become 8,159,146 shares, before the adjustment of fractional shares. The Company intends to take immediate steps to implement the consolidation. The consolidation remains subject to TSX Venture Exchange approval, which will be applied for in the next several days. No name change is proposed in connection with the share consolidation.
PRIVATE PLACEMENT
The Company announces a private placement of units as constituted following the share consolidation referred to in the foregoing. The private placement will consist of up to 7,000,000 post-consolidation units at $0.075 per unit, for proceeds of $525,000. Each unit will consist of one post-consolidation common share and one share purchase warrant. Each warrant will entitle the holder to purchase one post-consolidation common share at a price of $0.10 per share in the first two years, $0.15 per share in the third year, $0.20 per share in the fourth year and $0.25 per share in the fifth year. The Company will pay cash finders’ fees of 10% to qualified finders who locate subscribers for the placement. The proceeds from the placement will be used for property exploration and to provide working capital.
The private placement is subject to the approval of the TSX Venture Exchange.
The Company will not proceed with the pre-consolidation private placement announced September 4, 2012.
About Auramex Resource Corp. – www.auramex.com
Auramex Resource Corp. is a junior mining exploration company with projects in British Columbia and in Sinaloa State, Mexico. In B.C., the Company holds approximately 40,000 hectares near Stewart, a grass roots exploration project.
For information on Auramex please contact Judie Whitby at (604) 924-9376 or refer to the company’s website: www.auramex.com.
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.
AURAMEX RESOURCE CORP.