News Releases From NEX Companies For October 11th

There was one news release from a NEX company that was picked up by Marketwire on Thursday. Golden Sunset Trail Inc. [NEX: GST.H] ("Golden Sunset") has announced a Lock-Up Agreement for the purchse of 100% of the issued and outstanding shares of Brimstone Mining, Inc. through a recently set up, now-100%-owned, subsidiary of Golden Sunset, Golden Sunset Trail Montana Inc. ("Golden Sunset Montana.") The deal calls for Golden Sunset to issue 1,310 Golden Sunset Montana shares, as well as pay US$300,000 in cash, in exchange for the 4,500 Brimstone shares. Each Golden Sunset Montana share will be exchangable for 10,000 Golden Sunset shares provided that exchanging all of them does not give majority control of Golden Sunset to the holder(s) of the Golden Sunset Montana shares. At a deemed price of C$1,500/share for the Golden Sunset Montana shares, and by treating Canadian and U.S. dollars as being of equal value, the total outlay from Golden Sunset for Brimstone comes to C$2,265,000. This purchase is intended to be a Qualifying Transaction as defined by the Venture Stock Exchange, which means that Golden Sunset is intending to move to Tier 2 of the VSE. In addition to other releated items, the news release also mention that Golden Sunset intends to "complete a non-brokered private placement ("Private Placement") of a minimum of 7,333,333 [Golden Sunset] Common Shares at the price of $0.15 per share for gross proceeds of $1,100,000. The proceeds of the Private Placement will be used to fund the cash consideration of the Transaction and for working capital." Also mentioned later on is the fact that Golden Sunset does not have a sponsor for a move back to the Venture, and has applied for a waiver of that requirement.

There was one bulletin, containing three items, from a soon-to-be former NEX company at the bottom of Thursday's TSX Venture Daily Bulletins,. Surge Resources [NEX: SRH.H, to be VSE: SRH] is moving to the Tier 2, as of the opening of trading on Friday, October 12th. Also mentioned is that the reverse takeover of Transeuro Energy Corp. has been completed, for the same 30 million shares of Surge at the same deemed price of 85 cents/share. The third item is the announcement of a new private placement, in which 12 million shares of Surge will be issued at a deemed price of 85 cents/share for gross proceeds of $10.2 million. There are 126 hidden placees, and one insider placee, Stan Grad of Soderglen Ranches Ltd., for 1.3 million of the shares. The agent's fee is disclosed as "$612,000 plus 600,000 broker warrants (each exercisable into one common share at an exercise price of 85 cents for one year), payable to Canaccord Capital Corp." Canjex Publishing has webbed copies of the Tier 2 item, the reverse-takeover item and the private-placement item. Surge's last trade on the NEX put it at $1.40/share, on volume of 2,000 shares.

There was one news release sent out exclusively through Canjex on Thursday, which announces a planned $500,000 private placement by Citadel Gold Mines Inc. [NEX: CGM.H]. This financing consists of 4.25 million common shares of Citadel at a price of 8 cents/share, and 1,454,545 flow-through common shares at a price of 11 cents/share. All of them will be bought by Dr. Bernard Sherman, who is already a principal shareholder in the company. After the placement is completed, Dr. Sherman, who is not the CEO, will "control, directly and indirectly, approximately 55 per cent of the corporation." The terms were reached with the aid of a fairness opinion by Research Capital Corporation. The proceeds will be used for working capital and for continuance of exploration of Citadel's joint-venture Massey property at Salter, close to Sudbury. Citadel last closed at 8.5 cents/share on October 2nd; the only trade since then was an odd-lot'er, of 222 shares at 6.5 cents/share, made on Thursday.


To read about the highlighted NEX stocks for Thursday, you can go here.