Pasinex closes $2.33-million private placement

Executive Summary

• Pasinex Resources Ltd. has closed its non-brokered private placement of common shares, raising gross proceeds of $2,331,540.
• The offering was oversubscribed, with insiders participating significantly by subscribing for 2 million shares.
• Net proceeds are designated for advancing the Sarikaya project, including underground development, drilling, and permitting, alongside general working capital.

Key Details

• Gross Proceeds: $2,331,540
• Securities Issued: 31,087,200 common shares
• Price Per Share: $0.075 (7.5 cents)
• Total Shares Outstanding: 204,813,876 common shares following the closing
• Finders' Fees: $15,750 in cash plus 406,000 shares issued
• Insider Participation: Insiders subscribed for 2,000,000 common shares for gross proceeds of $150,000
• Related Party Transaction: Insider participation constitutes a related party transaction under MI 61-101; exemptions from formal valuation and minority approval requirements were relied upon under sections 5.5(a) and 5.7(1)(a)
• Hold Period: All securities are subject to a statutory hold period of four months from issuance
• Use of Proceeds: Advancing the Sarikaya project (instalment payments to previous owner, underground development, drilling, mine equipment, permitting costs) and general working capital; also includes advanced exploration activities within the Sarikaya licence area
• Context: The company notes that management and insiders converted approximately $2 million of shareholder loans into common shares at 7.5 cents in July, a premium to market, citing strengthened board/management and control over the Horzum and Sarikaya assets

Notable Quotes

• "Thank you to our shareholders in Canada, Germany and Austria for the strong support... Since the start of the year we have strengthened our board and management and kept a clear focus on simplifying our business in Turkey and delivering tangible results." — Dr. Larry Seeley, Executive Chairman
• "With agreements that crystallize 100-per-cent ownership of Horzum and favourable payment terms at Sarlkaya, we have both control and flexibility... The success of this oversubscribed financing strengthens our balance sheet and confirms the confidence of new and long-time investors." — Dr. Larry Seeley, Executive Chairman