MGX Minerals Closes First Tranche of Private Placement

MGX Minerals (CSE:XMG) has closed the first tranche of its previously announced non-brokered private placement for total gross proceeds of C$289,999. Proceeds will be used to continue exploration activities at the company’s Driftwood Creek magnesium property.
As quoted in the press release:

The Company issued an aggregate of 914,425 shares in connection with closing of the first tranche of the Private Placement. A total of 447,760 flow-through shares (“FT Shares”) were issued at a price of CA$0.335 per share for gross proceeds of CA$149,999 and 466,665 non flow-through common shares were issued at CA$0.30 per share for gross proceeds of CA$139,999. Participants in the Private Placement included Marquest FT Inc. and the Marquest Asset Management Explorer Series Fund.
The newly issued shares are subject to a four month and one day hold period from closing date. Net proceeds from the FT Shares will be used to incur eligible Canadian Exploration Expenses as defined under the Tax Act.
In connection with the Private Placement the Company paid a finder’s fee of CA$22,500 cash and issued 70,298 finder’s warrants. Each finder’s warrant is exercisable into one common share of the Company at price of CA$0.30 per share for a period of 24 months from closing date of the Private Placement.
The Company intends to use proceeds from the flow-through portion of the Private Placement to continue exploration activities at its flagship Driftwood Creek magnesium property. Remaining proceeds will be used for general working capital purposes.

Click here to read the MGX Minerals (CSE:XMG) press release
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