- 4,876,661 units of the company at a price of 30 cents per unit for aggregate gross proceeds of $1,462,998;
- 1,237,998 common shares of the company issued on a CEE (Canadian exploration expenses) flow-through basis pursuant to the Income Tax Act (Canada) at a price of 36 cents per flow-through share for aggregate gross proceeds of $445,679.
Each unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant will expire 24 months from the closing date of the offering and will entitle the holder to acquire one common share of the company at a price of 40 cents per common share. Gross proceeds raised under the first tranche of the offering are $1,908,678.
Proceeds of the offering will be used to pursue the company’s continuing exploration and drilling programs at its Jersey-Emerald, Jackpot/Oxide, Sheep Creek and Bayonne properties in Salmo, B.C., and for general working capital.
The securities issued pursuant to the offering are subject to a four-month hold period under applicable securities laws. The company has agreed to pay a finder’s fee on certain subscriptions under the offering in the amount of 6 per cent in cash on the proceeds received from certain subscribers and 6 per cent in finder’s warrants.
Finally, further to its press release dated Feb. 9, 2017, and subject to receipt of all required regulatory approvals, the company intends to amend the composition of the previously announced offering to up to 12.5 million units and up to 3,472,222 flow-through shares, for the same aggregate gross proceeds of up to $5-million as a result of investor demand.
About Margaux Resources Ltd.
Margaux is a publicly traded polymetallic exploration company focused on the exploration and development of previously producing properties in the Kootenay Arc, located in southeastern British Columbia, including the Jackpot/Oxide, Jersey-Emerald, Sheep Creek and Bayonne properties, on which Margaux has options. The company is directed by a group of highly successful Canadian business executives with proven records.