MGX Minerals Announces CA$12 Million Non-Brokered Private Placement Financing
June 05 2018 - 7:59AM
InvestorsHub NewsWire
VANCOUVER, BRITISH
COLUMBIA -- June 5, 2018 -- InvestorsHub NewsWire
-- MGX Minerals Inc. (“MGX” or the “Company”)
(CSE: XMG
/ OTCQB: MGXMF /
FSE: 1MG) is pleased to announce the
Company intends to complete a non-brokered private placement to
raise gross proceeds of up to CA$7,007,000 on a non-flow through
basis (the “NFT Financing”) and a concurrent non-brokered flow
through private placement to raise gross proceeds of CA$5,002,500
(the “FT Financing”), for aggregate gross proceeds of up to
CA$12,009,500.
The NFT Financing will consist of an
offering of up to 6,370,000 units (the “NFT Units”). Each NFT Unit
will be priced at $1.10 and 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 $1.20.
The FT Financing will consist of an
offering of up to 4,350,000 units (the “FT Units”). Each FT Unit
shall be priced at $1.15 and 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 the same terms as a Warrant
underlying the NFT Units.
The closing of the financings are
expected to take place on or about the week of June 18, 2018. The
securities issued under the FT Financing and the NFT Financing will
be subject to hold period of four-months and one day.
In connection with the NFT Financing
and the FT Financing, the Company will provide a finder's fee to
EMD Financial Inc. (“EMD”) equal to a cash payment of 8% of the
gross proceeds raised from purchasers of the NFT Units and the FT
Units introduced to the Company by EMD (“EMD Subscribers”) and
Common Shares equal to 4% of the total number of NFT Units and FT
Units sold to EMD Subscribers. In addition, EMD will receive
compensation options (“Compensation Options”) equal to 4% of the
total number of NFT Units and FT Units sold to EMD Subscribers.
Each Compensation Option will entitle EMD to purchase one unit at a
price of $1.20 for a period of 36 months following the closing date
(an “EMD Unit”), with each EMD Unit comprising one Common Share and
one Warrant. EMD will also receive a corporate finance fee equal to
$50,000.
The FT Financing proceeds will be used
for qualified mineral exploration expenses on the Company’s
projects in Canada. The NFT Financing 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.
The Company reminds shareholders it has
determined June 29, 2018 as the Record Date (the “Record Date”) for
the proposed distribution of the payment of a dividend in kind of
common shares in the capital of its wholly owned subsidiary,
ZincNyx Energy Solutions Inc. (“ZincNyx”). The
Company expects to issue dividend shares totaling 25%-40% of its
holdings in ZincNyx to MGX Shareholders of Record, pending final
audit and pricing of shares. The declaration and payment of any
such dividend (the “Proposed Distribution”) and the amount thereof
will be determined at the discretion of the Company’s board of
directors and will remain subject to, among other things,
satisfaction by the Company of all statutory obligations under
the Business Corporations Act (British
Columbia). The Proposed Distribution also remains subject to
applicable approvals and regulatory compliance in all respects. For
more information on the ZincNyx dividend, see the Company’s
news release dated April 30,
2018.
About MGX
Minerals
MGX Minerals is a diversified Canadian
resource company with interests in advanced material and energy
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 including
the completion of the rights offering (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.
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.
MGX Minerals (CSE:XMG)
Historical Stock Chart
From Aug 2024 to Sep 2024
MGX Minerals (CSE:XMG)
Historical Stock Chart
From Sep 2023 to Sep 2024