Silvermex closes $1.5-million private placement

2009-02-02 16:00 ET - News Release

Mr. Bruce Bragagnolo reports

SILVERMEX RESOURCES LTD. CLOSES BROKERED FINANCING OF $1,500,000

Silvermex Resources Ltd., further to its news release in Stockwatch dated Dec. 24, 2008, has closed its brokered private placement of 15 million units, at a price of 10 cents per unit, for gross proceeds of $1.5-million. Each unit consists of one common share and one-half of one share purchase warrant. Each whole warrant will entitle the holder to purchase an additional common share for a period of 18 months from closing, at a price of 15 cents per share. The brokered private placement was arranged through Canaccord Capital Corp. (the agent).

The agent's compensation consisted of a cash commission of 9 per cent of the gross proceeds of the brokered private placement. The agents were also issued 100,000 corporate finance units, the terms of which are the same as the units, and a compensation option exercisable to acquire that number of units (agent's units) equal to 9 per cent of the number of units sold pursuant to the brokered private placement. The terms of the agent's units are the same as the terms of the units. In addition, the agent received a corporate finance fee of $25,000 and a work fee of $5,000.

The common shares and warrants, constituting the units, the corporate finance units and the agent's units, are subject to a hold period expiring June 1, 2009, as are any common shares issued on exercise of the warrants (if exercised prior to the expiry of such hold period).

The proceeds of the private placement are intended to be used to finance work programs on the company's San Marcial property in Mexico and for general working capital purposes.

Hg