/THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO
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TORONTO, Sept. 7, 2016 /CNW/ - Moneta Porcupine Mines
Inc. (TSX:ME) (the "Company") is pleased to announce the
closing of its previously announced bought deal private placement
(the "Offering"), co-led by Cormark Securities Inc. and
Sprott Private Wealth LP (the "Underwriters").
Pursuant to the Offering, the Company issued 15,190,000
flow-through units (the "FT Units") at a price of
$0.395 per FT Unit and 2,714,431
units ("Units") at a price of $0.30 per Unit in the capital of the Company for
aggregate gross proceeds to the Company of approximately
$7.6 million. As part of the
Offering, the Underwriters exercised their over-allotment option
and purchased an additional 2,025,335 FT Units (the
"Option"). Each Unit consisted of one common share (a
"Common Share") and one Common Share purchase warrant (a
"Warrant"). Each FT Unit consisted of one flow-through
common share (a "Flow-Through Share") and one Warrant
exercisable into one Common Share at a price of $0.42 for twenty four months.
The net proceeds from the sale of the Units and FT Units will be
used to fund the exploration of the Company's mineral properties in
Ontario, Canada and for general
corporate and working capital purposes. The gross proceeds received
by the Company from the sale of the FT Units, inclusive of the
Option, will be used to incur Canadian Exploration Expenses, as
defined in the Income Tax Act (Canada), on the Company's properties in
Ontario and will be renounced to
the subscribers with an effective date of December 31, 2016.
The securities issued pursuant to the Offering are subject to a
standard four month regulatory hold period. The Offering is subject
to final approval of the Toronto Stock Exchange.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy any of the securities in
the United States. The 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 or for the account or benefit of a U.S. person (as defined in
Regulation S under the U.S. Securities Act) unless registered under
the U.S. Securities Act and applicable state securities laws or an
exemption from such registration is available.
About Moneta
Moneta holds a 100% interest in 5 core
gold projects strategically located along the Destor Porcupine
Fault Zone in the world class Timmins
Camp with over 85 million ounces of past gold production.
The Golden Highway Project covers 12 kilometres of a highly
prospective volcanic/sedimentary belt along the Destor Porcupine
Fault Zone and currently hosts a NI 43-101 resource estimate of
1,091,000 ounces indicated (31.1 Mt at 1.09 g/t Au) plus 3,204,000
ounces inferred (83.3 Mt at 1.20 g/t Au), clustered within four
kilometres.
The Company's public documents may be accessed at www.sedar.com.
For further information on the Company, please visit our website at
www.monetaporcupine.com or email us at
info@monetaporcupine.com.
SOURCE Moneta Porcupine Mines Inc.