Margaret Lake Diamonds Announces Non Brokered Flow-Through and Non Flow Through Private Placements for Gross Proceeds of up to $2,201,000

Margaret Lake Diamonds Inc. (TSXV:DIA / FSE:M85) (“Margaret Lake” or the “Company”) announces a non brokered flow-through private placement (the ” FT Offering”) of up to 7,700,000 units (each a “FT Unit”) at a price of $0.13 per FT Unit, for aggregate gross proceeds of up to $1,001,000 and a concurrent non flow-through private placement (the “NFT Offering”) of up to 10,000,000 units (each a “NFT Unit”) at a price of $.12 per NFT Unit for aggregate gross proceeds of up to an additional $1,200,000.

Each FT Unit shall consist of one flow-through common share of the Company (a “FT Common Share”) and one transferable non flow-through common share purchase warrant (each a “Warrant”), with each Warrant entitling the holder thereof to acquire one additional Common Share at a price of $0.20 for a period of thirty-six (36) months following closing of the FT Offering.

Each NFT Unit shall consist of one non-flow through common share of the Company (a “NFT Common Share”) and Warrant.

The Warrant contain an acceleration provision under which the Company can accelerate the term of the Warrants to 30 days following notice by the Company to the Warrant holders, which notice may be given if the closing price of the Company’s common shares is greater than $.30 per share for 10 trading days on a VWAP basis.

The Company may pay finder’s fees under the Offering in accordance with applicable securities laws and the policies of the TSX Venture Exchange (the “Exchange”). In respect of the FT Offering, the Company expects to pay a finder’s fee in cash equal to 8% of the gross proceeds raised in the FT Offering (which will be paid from general working capital or proceeds of the NFT Offering) and issue finder’s warrants (the “Finder’s Warrants”) equal to 8% of the number of FT Units issued under the FT Offering, each Finder’s Warrant having the same terms, conditions and acceleration provisions as the Warrants. The Company expects to pay similar finder’s fees in respect of the NFT Offering.

The net proceeds from the FT Offering will be used for the Company’s planned upcoming drill program on the Margaret Lake Property during the first quarter of 2018 and for geophysical and geotechnical work on the Diagras Property, and the proceeds of the NFT Offering will be used for additional exploration and ongoing general and administrative expenses.

Closing of the Offering is subject to receipt of applicable regulatory approvals including the approval of the Exchange. The securities issued will be subject to a standard four month and one day hold period.

Source: www.margaretdiamonds.com