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Geologix Explorations Inc
Symbol GIX
Shares Issued 161,942,893
Close 2016-06-17 C$ 0.08
Market Cap C$ 12,955,431
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Geologix names Patankar CEO, arranges $1.1M financing

2016-06-20 10:19 ET - News Release

Mr. Dunham Craig reports

GEOLOGIX ENHANCES MANAGEMENT TEAM AND ANNOUNCES $1,105,000 UNIT OFFERING

Geologix Explorations Inc. has appointed Kiran Patankar as president and chief executive officer of the company. Mr. Patankar will succeed Dunham Craig, who has been appointed chairman of the board. Past chairman George Brack has been appointed lead independent director.

Mr. Patankar is a mining executive with over 12 years of diverse experience as a public company CEO and director, investment banker, operations manager, and geological engineer. He was previously president, CEO and director of Timberline Resources Corp., where he spearheaded the acquisition of the 1.2-million-ounce Talapoosa gold project, oversaw a positive independent preliminary economic assessment, and directed a competitive sales process that led to an announced offer by a private equity fund and $500,000 (U.S.) in equity financing amid a difficult market for junior gold companies. From 2007 to 2014, Mr. Patankar was an investment banker with Canadian and global financial institutions, where he advised clients ranging from junior growth companies to senior mining companies on capital raising and mergers and acquisitions. Prior to that, he worked in the mining industry for four years as a geologist and engineer, and in the construction materials industry for two years in operational and business development roles. Mr. Patankar holds a BSc in geological engineering from the Colorado School of Mines and an MBA from the Yale School of Management.

In connection with Mr. Patankar's appointment, the company's board of directors has approved an inducement grant to Mr. Patankar of 550,000 common shares of the company and a common share purchase option to purchase 600,000 common shares of the company for five years at eight cents per share. The inducement option will vest, as to 25 per cent, on each of granting on Sept. 16, 2016, Dec. 16, 2016, and June 16, 2017. The issuance of the inducement shares is subject to the approval of the TSX Venture Exchange.

Dunham Craig, Geologix's chairman of the board, stated: "We foresee that the resource sector is on the cusp of a turnaround and realize there are strategic opportunities that have potential to be beneficial to our shareholders. We believe now is the time to bring in a new leadership skill set to leverage these opportunities while maintaining continuity with the team that brought our primary asset, the Tepal gold/copper project, to its current advanced state. Kiran's strong finance, capital markets and technical background will provide an essential foundation for the company's future growth and complements the combined skills of our highly experienced board of directors. We are very excited to welcome Kiran to the management team at Geologix and to working together to create value for all our stakeholders."

The company is also pleased to announce its intention to carry out a non-brokered private placement of up to 17 million units at 6.5 cents per unit for gross proceeds of up to $1,105,000. Each unit will consist of one common share and one-half of one non-transferable share purchase warrant. Each whole warrant will entitle the holder to purchase one common share for three years at a price of 10 cents. The company has received a subscription agreement from a European institutional investor, representing 9.7 million units, or 57 per cent of the offering. The company intends to use the net proceeds for the continued advancement of the Tepal project and for general corporate purposes. The offering is subject to approval of the TSX Venture Exchange.

In connection with the offering, four company directors have agreed to the early conversion of their convertible, unsecured, 10-per-cent three-year promissory notes totalling $300,000 into 8,333,333 common shares pursuant to the conversion price at the time the notes were issued of 3.6 cents per share.

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