In conjunction with the acquisition of the option, Osisko has also completed the previously announced private placement of 6,250,000 flow-through shares at $0.40 per share for gross proceeds of $2,500,000. The shares are subject to a hold period expiring on October 18, 2015. Osisko now owns 17.21% of the common shares of TerraX along with warrants exercisable to purchase an additional 2,243,463 shares of TerraX. Osisko has also been granted rights to participate in future production royalties held or created by TerraX following the Private Placement and pro rata financing participation rights. Osisko will be entitled to nominate one (1) director who will be put forward and included in management's nominees for directors at any meeting of TerraX shareholders, as long as Osisko holds at least 10% of the issued and outstanding TerraX Shares on a non-diluted basis.
The proceeds of this private placement, along with the $2 Million flow through private placement completed by TerraX earlier this month and additional subscriptions scheduled to close shortly, will be used for eligible Canadian Exploration Expenses on the YCG, where technical staff from Osisko are currently in the field assisting TerraX personnel mapping and prioritizing drill targets for drilling scheduled to start-up in mid July.
Joe Campbell, President of TerraX, stated, "TerraX has always been committed to putting our dollars into the ground where they have the best chance of returning value to our investors. Now, in the midst of historically difficult capital markets for junior mining companies, TerraX has more exploration funding available than at any time in the history of the company. This funding, along with our technical partnership with Osisko, gives TerraX the financial means to effectively explore the world class potential of the Yellowknife City Gold project."
About the Yellowknife City Gold Project
The Yellowknife City Gold Project now encompasses approximately 99.3 sq km of contiguous land immediately north of the City of Yellowknife in the Northwest Territories. Through a series of acquisitions, TerraX now controls one of the six major high-grade gold camps in Canada - and the least explored.
The project lies on the prolific Yellowknife greenstone belt and covers 15 km of strike length on the northern extension of the shear system that hosts the high-grade Con and Giant gold mines. The project area contains multiple shears that are the recognized hosts for gold deposits in the Yellowknife gold district, with innumerable gold showings and high grade drill results this past year that serve to indicate the project's potential as a world-class gold district. Since February 2013, TerraX has consolidated the project area by acquiring, optioning and staking numerous properties, including: Northbelt, Goodwin, Ryan Lake, Walsh Lake, and U-Breccia, as well as staking additional contiguous lands. Being all-season road accessible and within 15 km of the City of Yellowknife, the YCG is close to vital infrastructure, including transportation, service providers, hydro-electric power and skilled trades people
For more information on the Yellowknife City Gold Project, please visit our web site at www.terraxminerals.com.
On behalf of the Board of Directors
"JOSEPH CAMPBELL"
Joseph Campbell
President
info@paradox-pr.ca
Phone: 514-341-0408 Toll Free: 1-866-460-0408
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.
This news release contains forward-looking information, which involves known and unknown risks, uncertainties and other factors that may cause actual events to differ materially from current expectation. Important factors - including the availability of funds, the results of financing efforts, the completion of due diligence and the results of exploration activities - that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time on SEDAR (see www.sedar.com). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
