Luminex Resources Announces C$10 Million Private Placement

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

VANCOUVER, British Columbia, June 03, 2020 (GLOBE NEWSWIRE) -- Luminex Resources Corp. (TSXV: LR) (the “Company” or “Luminex”) is pleased to announce that it has entered into an agreement with a syndicate of agents, led by Haywood Securities Inc. (collectively, the “Agents”), that have agreed to sell, on a commercially reasonable efforts private placement basis, up to 9,286,000 common shares (“Shares”) at a price of C$0.70 per Share (the “Offering Price”), for aggregate gross proceeds of up to C$6,500,200 (the “Brokered Offering”). In addition, the Company intends to complete a concurrent non-brokered private placement of up to C$3,500,000 worth of Shares (the “Non-Brokered Offering”, and together with the Brokered Offering, the “Offering"), on the same terms as the Brokered Offering with certain insiders and strategic investors.

The Company has granted the Agents an option (the “Over-Allotment Option”), exercisable in whole or in part by the Agents, to sell an additional C$975,030 of Shares at the Offering Price.

The Company plans to use the net proceeds from the Offering for the exploration and advancement of the Company’s projects in Ecuador and for general corporate purposes. The Offering is scheduled to close on or about June 24, 2020 (the “Closing Date”), and is subject to certain conditions customary for transactions of this nature, including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange. The Company has agreed to pay the Agents a cash commission of up to 6% of the gross proceeds raised under the Brokered Offering.

The common shares issued in the Offering will be subject to a statutory hold period of four months and one day following the Closing Date.

The securities to be offered pursuant to the Offering have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act") or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.