MGX Minerals (CSE:XMG) is pleased to announce the offering, by way of non-brokered private placement (the “Offering”), of up to 2,500,000 flow-through units (the “Flow-Through Units”) at a price of $1.00 per Flow-Through Unit for gross proceeds of up to $2,500,000.Each Flow-Through Unit will consist of one common share of the Company (each, a “Flow-Through Share”), issued on a “flow-through” basis pursuant to the Income Tax Act (Canada) and one-half of one transferable common share purchase warrant (each whole warrant, a “Warrant”), with each Warrant entitling the holder to acquire one common share of the Company (each, a “Warrant Share”) at a price of $1.15 per Warrant Share for a period of 24 months from the closing of the Offering.
The closing of the Offering is expected to occur on or before June 9, 2017 and is subject to the completion of formal documentation and filings with the Canadian Securities Exchange. The securities issued pursuant to the Offering will be subject to a hold period of four months and one day.
The Company will use the proceeds of the Offering to continue its exploration activities on its projects in British Columbia.
In connection with the Offering, 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 Flow Through Units introduced to the Company EMD, common shares of the Company equal to 4% of the total number of Flow-Through Units sold, and non-transferable warrants equal to 4% of the total number of Flow Through Units sold under the Offering (the “Finder Warrants”). Each Finder Warrant will entitle the holder to purchase one common share at a price of $1.55 for a period of 24 months following the closing date.
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.
Source: www.mgxminerals.com
