Canamex Gold arranges security token offering

May 10, 2018

2018-05-09 12:12 ET – News Release

Mr. David Vincent reports

CANAMEX GOLD CORP. ANNOUNCES GOLDUSA (SYMBOL GOLD) SECURITY TOKEN OFFERING (STO)

Canamex Gold Corp. will be launching a non-brokered private placement to accredited investors, via an initial security token offering. It is anticipated that this initial STO will provide the financing to complete mine permitting and development work, to a shovel-ready stage (production decision and construction financing), at the Bruner gold project in Nevada. Further general details of the proposed STO and further initiatives proposed by the company are as follows.

Security token offering (STO):

Initial STO for GOLDUSA Tokens starting at 40-per-cent discount to the spot gold price;
Exposure to gold-backed token, starting at $800 (U.S.) per ounce instead of approximately $1,350 per oz spot price;
Each token is an interest in 1/200ths oz gold and initial token price is only $4 (U.S.) per token;
This is 40-per-cent discount to $6.75 (U.S.) value per token, based on $1,350 (U.S.) per oz spot gold price;
Minimum subscription: 2,000 GOLDUSA Tokens;
Purchase methods accepted: fiat currencies, Ethereum (ETH) and Bitcoin (BTC).

This pricing is for a limited time from the launch date. After that date, the company reserves the right to increase the initial STO subscription offer price in accordance with the following indicative schedule, or earlier depending on demand.

Week from the launch date      Offer price      Offer price      Spot premium        Offer price
                                 per token        per ounce    to offer price   discount to spot

Week 0                        $4.000 (U.S.)      $800 (U.S.)              69%                41%
Week 1                        $4.125 (U.S.)      $825 (U.S.)              64%                39%
Week 2                        $4.250 (U.S.)      $850 (U.S.)              59%                37%
Week 3                        $4.375 (U.S.)      $875 (U.S.)              54%                35%
Week 4                        $4.500 (U.S.)      $900 (U.S.)              50%                33%
Week 5                        $4.625 (U.S.)      $925 (U.S.)              46%                31%
Week 6                        $4.750 (U.S.)      $950 (U.S.)              42%                30%
Week 7                        $4.875 (U.S.)      $975 (U.S.)              38%                28%
Week 8                        $5.000 (U.S.)    $1,000 (U.S.)              35%                26%

Assumptions: gold spot price of $1,350 (U.S.) per ounce used as a basis for these calculations
but which varies daily.

Subscription

The accredited investor subscription process will be digital, via an on-line portal. Further details to be provided at launch date. Purchase methods accepted: fiat currencies, Ethereum (ETH) and Bitcoin (BTC).

Gold token holder — conversion offer

On Feb. 2, 2018, the company announced a non-brokered private placement of gold tokens to accredited investors, and although subscriptions were received, it has not been closed, pending the launch of this STO. This private placement will remain open until the STO launch date, at which time it will be closed. Gold token subscriptions received prior to this STO launch date, will be offered to convert into this STO at a discount to the STO price, by offering gold token holders an additional 25 per cent in GOLDUSA tokens. For example, gold token holder has 2,000 tokens, and elects to convert to GOLDUSA tokens. Gold token holder receives 2,500 (2,000 plus 25-per-cent bonus) GOLDUSA tokens, under the same terms as this STO. The gold tokens converted, are cancelled, and the holder is issued GOLDUSA tokens. This will provide better liquidity and transferability for gold token holders, by electing to convert to GOLDUSA tokens. Any valid subscriptions received for gold tokens prior to STO launch date, will be offered the 25-per-cent bonus to convert to GOLDUSA tokens, at the election of the gold token holder.

Considerations and risks

An investment in the GOLDUSA Tokens offered via this STO, should be considered speculative due to various factors, including the nature of the industry in which the company operates. Risk factors relating to the company are discussed in certain of public disclosures of the company which are available for review on the company’s SEDAR profile. Risk factors should be carefully reviewed and considered by an investor before a decision is made to invest in the GOLDUSA Tokens. Relevant considerations and risks associated with the STO will be fully disclosed at the STO launch date.

Comments from management

David Vincent, chief executive officer of the company, said: “With the commencement of the permitting process at the Bruner gold project, the board of the company has considered various financing options for project development and potential mine construction. The board concluded that this royalty stream STO financing model provides the best option for all stakeholders.”

About Canamex Gold Corp.

Canamex Gold is engaged in advancing the Bruner gold project, located in the prolific gold jurisdiction of Nye county, Nevada. The region is home to several producing and past-producing mines along the Walker Lane trend. Canamex completed a positive preliminary economic assessment on the Bruner gold development project in 2016. Based on additional drilling conducted on the property, the company completed an updated PEA in 2018, which significantly advances the project.

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https://canamexgold.com/news/