Mr. Adrian Fleming reports
GENESIS ANNOUNCES DR. DAVID TERRY AS NEW CEO AND $3.5 MILLION DOLLAR PRIVATE PLACEMENT
Genesis Metals Corp. has appointed Dr. David A. Terry, PhD, PGeo, as chief executive officer, president and director.
Genesis chairman Adrian Fleming commented: "David Terry as Genesis Metal's new CEO will bring a breadth of technical and commercial expertise to the company. Along with our strong technical team I believe Genesis is poised to deliver value to its shareholders. On behalf of the board I welcome David to lead our team."
Dr. Terry is a professional economic geologist, senior executive and corporate director with more than 25 years of international experience in the mineral resources sector. He has played key roles in the successful discovery/acquisition, exploration and development of a number of precious and base metal deposits, primarily in North and South America, and has expertise in advanced project evaluation, mergers and acquisitions, corporate finance, and design and execution of effective exploration programs.
In the course of his career Dr. Terry has held executive positions and directorships with a number of publicly listed and private mineral resource companies; he currently serves as a director of Great Bear Resources Ltd., Golden Arrow Resources Corp., Aftermath Silver Ltd. and Blue Sky Uranium Corp. He has also worked with a number of senior mining companies including Boliden Ltd., Westmin Resources Ltd., Hemlo Gold Mines Inc., Cominco Ltd. and Gold Fields Mining Corp.
Dr. Terry holds a BSc and PhD in geology from Western University in Ontario and is a member of the Association of Professional Engineers and Geoscientists of British Columbia.
Jeff Sundar will remain as an executive director of the company.
Private placement and concurrent consolidation
The company plans to consolidate the company's common shares on the basis of one postconsolidation common share for every five preconsolidation common shares. In addition, the company intends to raise up to $3.5-million through a non-brokered private placement.
The company plans to raise up to an aggregate of $3.5-million through the sale of up to 3,125,000 flow-through common shares at a price of 32 cents per flow-through share and up to 11,111,111 units at a price of 22.5 cents per unit, all on a postconsolidation basis. Each unit will consist of one common share in the capital of the company and one-half of one warrant; each whole such warrant will entitle the holder to purchase one additional common share of the company at a price of 33 cents per share for a period of 24 months from the date of issuance.
The company will have the option to increase the size of each offering by up to 25 per cent, which, if fully exercised, would bring the aggregate gross amount raised under the offerings to $4,375,000.
The gross proceeds from the sale of the flow-through shares intended to be used to incur exploration expenses on the company's Chevrier gold project in Quebec and the net proceeds from the sale of the units are intended to be used for general working capital purposes.
The company may pay a finder's fee in connection with the private placement. The private placement is subject to TSX Venture Exchange approval and all securities issued and issuable pursuant thereto will be subject to a four-month hold period.
Subject to TSX Venture Exchange approval, the company intends to complete the proposed consolidation immediately prior to closing of the private placement. Genesis currently has 109,939,095 common shares issued and outstanding and, after giving effect to the proposed consolidation, the company expects to have approximately 21,987,819 common shares issued and outstanding on an undiluted basis and excluding any securities to be issued pursuant to the private placement.
The exercise price and number of common shares issuable upon the exercise of Genesis's outstanding stock options, warrants or other convertible securities will be proportionately adjusted to reflect the proposed consolidation in accordance with the terms of such securities. Where the proposed consolidation results in a fractional common share, the number of common shares will be rounded to the nearest whole common share.
About Genesis Metals Corp.
Genesis Metals is a member of the Discovery group of companies, an alliance of public companies focused on the advancement of mineral exploration and mining projects with a proven record of generating shareholder value through responsible, sustainable and innovative development. Discovery Group companies have generated over $500-million in direct and indirect expenditures resulting in over $1-billion in M&A activity, with notable recent successes being the sale of Northern Empire Resources Corp. to Coeur Mining Inc. and the sale of Kaminak Gold Corp. to Goldcorp Inc. Current Discovery group member companies include: Great Bear Resources Ltd., Bluestone Resources Inc., Valore Metals Corp., Ethos Gold Corp., Fireweed Zinc Ltd., Dunnedin Ventures Inc. and K2 Gold Corp.
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