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VANCOUVER, BC, July 16, 2020 /CNW/ - Mako Mining Corp.
(TSXV: MKO) (OTCQX: MAKOF) ("Mako" or the "Company") is pleased to
announce that it has closed the private placement initially
announced on June 26, 2020 for total
gross proceeds of $28.4 million (the
"Offering"). The Offering consisted of a bought deal private
placement (the "Bought Deal Offering") of an aggregate of
30,000,000 units of the Company (the "Units") at an issue price per
Unit of $0.40 (the "Offering Price")
for total gross proceeds of $12.0
million and a concurrent non-brokered private placement of
an aggregate of 41,000,000 Units issued to Wexford Spectrum Trading
Limited and Wexford Catalyst Trading Limited, funds managed by
Wexford Capital LP (collectively, "Wexford") on the same terms as
the Bought Deal Offering for total gross proceeds of $16.4 million, pursuant to the exercise by
Wexford of its participation right under the investor rights
agreement between the Company and Wexford dated November 9, 2018.
Each Unit consisted of one common share of the Company (a
"Common Share") and one-half of one common share purchase warrant
(each whole common share purchase warrant, a "Warrant"). Each
Warrant is exercisable by the holder thereof to purchase one Common
Share at an exercise price of $0.60
until January 16, 2022.
The net proceeds from the Offering will be used to fund
remaining capital expenditures at the San Albino Gold Project in
Nicaragua, for debt repayment
(from funds raised under the Bought Deal Offering only),
exploration expenditures and working capital and general corporate
purposes.
Stifel GMP led a syndicate of underwriters, which included Eight
Capital and INFOR Financial Inc. (collectively, the "Underwriters")
in the Bought Deal Offering. In connection with the Bought Deal
Offering, the Company paid the Underwriters a cash fee equal to
6.0% of the gross proceeds of the Bought Deal Offering and issued
to the Underwriters broker warrants (the "Broker Warrants") equal
to 5.0% of the number of Units sold pursuant to the Bought Deal
Offering. Each Broker Warrant is exercisable to acquire one Common
Share at the Offering Price until January
16, 2022.
The Common Shares, Warrants and Broker Warrants issued pursuant
to the Offering, and any Common Shares issued upon the exercise of
the Warrants and Broker Warrants, are subject to a statutory hold
period expiring November 17, 2020.
The Offering remains subject to final approval of the TSX Venture
Exchange ("TSXV"). The TSXV has conditionally approved the listing
of all Common Shares issuable under the Offering and the listing of
the Warrants upon the expiry of the statutory hold period, subject
to fulfilling all of the listing requirements of the TSXV.
The Company relied on the exemptions from the formal valuation
and minority shareholder approval requirements of MI 61-101
contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect
of related party participation in the Offering as neither the fair
market value (as determined under MI 61-101) of the subject matter
of, nor the fair market value of the consideration for, the
transaction, insofar as it involves the related parties, exceeded
25% of the Company's market capitalization (as determined under MI
61-101).
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.
On behalf of the Board,
Akiba
Leisman
Chief Executive Officer
About Mako
Mako Mining Corp. is a publicly listed gold mining, development
and exploration firm. The Company is developing its high-grade San
Albino gold project in Nueva
Segovia, Nicaragua. Mako's
primary objective is to bring San Albino into production quickly
and efficiently, while continuing exploration of prospective
targets in Nicaragua.
Forward-Looking Statements:
Some of the statements contained herein may be considered
"forward-looking information" within the meaning of applicable
securities laws, including statements regarding the use of net
proceeds from the Offering. Although Mako believes that the
expectations reflected in its forward-looking information are
reasonable, such information has been based on factors and
assumptions concerning future events that may prove to be
inaccurate. These factors and assumptions are based upon currently
available information to Mako. Such information is subject to known
and unknown risks, uncertainties and other factors that could
influence actual results or events and cause actual results or
events to differ materially from those stated, anticipated or
implied in the forward-looking information. A number of important
factors including those set forth in other public filings could
cause actual outcomes and results to differ materially from those
expressed in these forward-looking statements. Factors that could
cause the actual results to differ materially from those in
forward-looking statements include the receipt of final approval
from the TSXV in respect of the Offering and the timing thereof.
Readers are cautioned to not place undue reliance on
forward-looking statements. The statements in this press release
are made as of the date of this release and, except as required by
applicable law, Mako does not undertake any obligation to publicly
update or to revise any of the included forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required under applicable securities laws.
NEITHER THE TSXV NOR ITS REGULATION SERVICES PROVIDER (AS
THAT TERM IS DEFINED IN POLICIES OF THE TSXV) ACCEPTS
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS
RELEASE.
www.makominingcorp.com
SOURCE Mako Mining Corp.