MGX Minerals Announces Closing of Special Warrant Offering
THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.
VANCOUVER, BRITISH COLUMBIA / May 12, 2017 / MGX Minerals Inc. (“MGX” or the “Company”) (CSE: XMG / FKT: 1MG / OTC: MGXMF)is pleased to announce the closing of the Company’s previously announced private placement financing (the “Offering”) through the distribution of 3,555,556 special warrants of the Company (“Special Warrants”) at a price of CAD$0.90 per Special Warrant (the “Issue Price”) for gross proceeds of CAD$3.2 million. Each Special Warrant is exercisable, for no additional consideration, into one unit (“Unit”) of the Company. Each Unit shall be comprised of one common share (“Common Share”) and one common share purchase warrant (“Warrant”), with each Warrant entitling the holder to purchase one additional Common Share at a price of CAD$1.15 until May 12, 2019, subject to acceleration at any time prior to the expiry of the Warrants the ten day volume-weighted average trading price of the Common Shares exceeds CAD$2.00 then the Company may provide notice to the holders of the Warrants that the Warrants will expire 30 days after the date of the notice.
The Company intends to use the net proceeds from the Offering to reduce indebtedness (including trade payables and up to CAD$500,000 in repayment of a loan made to MGX by an officer of MGX) and for development and exploration of its Alberta Lithium Claims, Sturgeon Lake Property and Driftwood Property (each as described in the Company’s Annual Information Form, dated March 31, 2017) and for general working capital purposes.
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https://www.mgxminerals.com/investors/news/2017.html