/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE
SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES/
KELOWNA, BC, May 24, 2017 /CNW/ - Georox Resources Inc.
("Georox" or the "Corporation") (GXR: TSX-V;
OF6A:FRA) is seeking to raise $450,000 in a non-brokered private placement
("Private Placement").
Under the proposed terms of the Private Placement, and subject
to TSXV approval, the Corporation will issue, up to 6,428,571 units
at a price of $0.07 per unit for
gross cash proceeds of approximately $450,000 the ("Offering").
Each unit will consist of one (1) Common Share and one (1)
Common Share half purchase warrant. Each whole warrant will entitle
the holder to acquire one (1) Common Share at a price of
$0.14 for a period of two years to
and including May 22, 2019. The
Offering will be completed in one or more tranches and the
securities under the Offering will have a hold period of four (4)
months from the applicable closing date of each tranche. Closing of
the Offering is not subject to a minimum aggregate subscription
amount but shall be subject to receipt of all required regulatory
approvals, including the TSX Venture Exchange.
The Corporation may pay finders' fees to eligible persons
consisting of cash of up to 10% of the proceeds from the units sold
to investors introduced by and attributable to the efforts of the
finders.
After giving effect to the maximum Offering, Georox will have
29,402,466 common shares outstanding on a basic basis. Any
participation by insiders of the Corporation in the Offering will
be on the same terms as the arm's length investors. The Corporation
has no reason to believe that the Private Placement will result in
a change of control of the Corporation.
The Offering is expected to be completed within thirty days.
The Private Placement proceeds will be used for the optimization
of production on its Red Earth,
Alberta Property for the completion of a water flood program, and
for general corporate purposes.
The water flood program is scheduled to begin during the third
week of June. Management believes that the implementation of water
flood will result in a significant increase in recoverable reserves
and in daily production rates and a decrease of operating
costs.
About Georox:
Georox is a public oil and gas exploration, exploitation and
development company focusing on conventional oil and gas reservoirs
in Western Canada. Georox will use
its experience to develop, acquire and drill assets with potential
for primary and secondary recovery.
Production volumes are commonly expressed on a barrel of oil
equivalent ("boe") basis whereby natural gas volumes are converted
at a ratio of six thousand cubic feet to one barrel of oil.
The intention is to convert oil and natural gas measurement units
into one basis for improved analysis of results and comparisons
with other industry participants. The term BOE may be
misleading, particularly if used in isolation. The conversion
ratio is based on an energy equivalent method and does not
represent an economic value equivalency at the wellhead.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements relating
to the future operations of the Corporation and other statements
that are not historical facts. Forward-looking statements are often
identified by terms such as "will", "may", "should", "anticipate",
"expects" and similar expressions. All statements other than
statements of historical fact, included in this release, including,
without limitation, statements regarding future plans and
objectives of the Corporation, are forward looking statements that
involve risks and uncertainties. There can be no assurance
that such statements will prove to be accurate and actual results
and future events could differ materially from those anticipated in
such statements. More particularly, it contains
forward-looking statements concerning: (i) the completion and
potential benefits of the Consolidation; (ii) the timing and
completion of the Offering and the use of proceeds from the Private
Placement; and (iii) the potential appointment of a new director to
Georox's board of directors.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy any of the Units in the United States. The Units (or constituent
securities) have not been and will not be registered under the
United States Securities Act of 1933, as amended (the "U.S.
Securities Act") or any state securities laws and may not be
offered or sold within the United
States or to U.S. Persons unless registered under the U.S.
Securities Act and applicable state securities laws or an exemption
from such registration is available.
Neither the TSXV nor its Regulation Services Provider (as that
term is defined in the policies of the TSXV) accepts responsibility
for the adequacy or accuracy of this release.
SOURCE Georox Resources Inc.