MGX Minerals Closes $6.3 Million First Tranche of Non-Brokered Private Placement
December 11 2017 - 8:30AM
InvestorsHub NewsWire
MGX
Minerals Closes $6.3 Million First Tranche of Non-Brokered Private
Placement
Vancouver, BC -- December 11, 2017 -- InvestorsHub
NewsWire -- MGX Minerals Inc. (“MGX” or
the “Company”) (CSE:
XMG / FKT:
1MG / OTC:
MGXMF) is pleased to announce, further to its news
release dated November 29, 2017, it has closed the first tranche of
its previously announced non-brokered private placement financing
for proceeds of up to $7,500,000 (the “Offering”).
The first tranche generated raising gross proceeds of $6,304,801.60
by issuance of 3,092,192 flow through units (the “FT Units”) at
$1.05 per FT Unit and 3,058,000 non flow through units (the “NFT
Units”) at $1.00 per NFT Unit. The Company anticipates closing its
second and final tranche of the Offering before December 15,
2017.
Under the Offering, the Company planned to issue up to an aggregate
of 5,000,000 NFT Units and 2,380,852 FT Units. The FT Units were
oversubscribed by 711,240 FT Units in the first tranche.
Each NFT Unit is comprised of one common share of the Company (a
“Common Share”) and one common share purchase warrant (a
“Warrant”). Each Warrant will entitle the holder to acquire one
additional Common Share of the Company for a period of 36 months
from the date of closing at an exercise price of $1.15. Each FT
Unit is comprised of one Common Share issued on a flow-through
basis pursuant to the Income Tax Act (Canada) and one-half of one
Common Share purchase warrant (each whole warrant, a “FT
Warrant”). Each FT Warrant will entitle the holder to acquire
one additional Common Share, on a non-flow through basis, for a
period of 36 months at a price of $1.15.
The securities issued under the Offering will be subject to hold
period of four-months and one day.
In connection with the Offering, the Company will provide a
finder's fee to EMD Financial Inc. (“EMD”) equal to a cash payment
of 8% of the gross proceeds of the Offering raised from purchasers
introduced to the Company by EMD, Common Shares equal to 4% of the
total number of NFT Units and FT Units sold to EMD purchasers, and
non-transferable warrants equal to 4% of the total number of NFT
Units and FT Units sold to EMD purchasers (the “Finder Warrants”).
Each Finder Warrant will entitle the holder to purchase one common
share at a price of $1.15 for a period of 36 months following the
closing date.
The FT Unit proceeds will be used for qualified mineral exploration
expenses on the Company’s projects in Canada. The NFT Unit proceeds
are expected to be used for advancement of the Company’s lithium
and magnesium assets, including continued investment into
extraction equipment and PurLucid, property payments and additional
acquisitions, engineering studies, permitting activities, and for
general working capital.
This news 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 unless registered under
the U.S. Securities Act and applicable state securities laws or an
exemption from such registration is available.
About MGX Minerals
MGX Minerals is a diversified Canadian resource company with
interests in lithium, magnesium and silicon assets throughout North
America. Learn more at www.mgxminerals.com.
Contact Information
Jared Lazerson
President and CEO
Telephone: 1.604.681.7735
Web: www.mgxminerals.com
Neither the Canadian Securities Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
Canadian Securities Exchange) accepts responsibility for the
adequacy or accuracy of this release.
Forward-Looking Statements
This press release contains forward-looking information or
forward-looking statements (collectively "forward-looking
information") within the meaning of applicable securities laws.
Forward-looking information is typically identified by words such
as: "believe", "expect", "anticipate", "intend", "estimate",
"potentially" and similar expressions, or are those, which, by
their nature, refer to future events. The Company cautions
investors that any forward-looking information provided by the
Company is not a guarantee of future results or performance, and
that actual results may differ materially from those in
forward-looking information as a result of various factors. The
reader is referred to the Company's public filings for a more
complete discussion of such risk factors and their potential
effects which may be accessed through the Company's profile on
SEDAR at www.sedar.com.
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