MGX Minerals Closes First Tranche of Private Placement
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VANCOUVER, BRITISH COLUMBIA / TheNewswire / October 1, 2015 / MGX Minerals Inc. ("MGX" or the "Company") (CSE: XMG / FKT: 1MG) announces the Company has closed the first tranche of its previously announced non-brokered Private Placement (the "Private Placement") (see press release dated August 31, 2015) for total gross proceeds of CA$238,300.
The Company issued an aggregate of 472,364 units in connection with the first tranche of the Private Placement. A total of 42,364 units consisting of one flow-through common share and one common share purchase warrant were issued at a price of CA$0.55 per share for gross proceeds of CA$23,300, and a total of 430,000 units consisting of one common share and one common share purchase warrant were issued at CA$0.50 per share for a gross proceeds of CA$215,000. The newly issued shares are subject to a four month and one day hold period from the closing date. Any purchase warrants distributed in this first tranche shall be exercisable for 12 months from the grant date at an exercise price of $0.65.
The proceeds from the units containing flow-through common shares will be used to incur eligible Canadian Exploration Expenses, as defined under the Tax Act. The remaining proceeds will be used to settle outstanding debts for services and for general working capital purposes.
Palisade Capital Corp.
Palisade Capital Corp. was a participant in the Private Placement. Palisade is an offshore merchant banking group, specializing in high growth, small cap investments. Palisade has a global network of private equity groups, fund managers, high net-worth and retail investors which it uses to create strategic relationships to increase liquidity and source financing.
About MGX Minerals
MGX Minerals (CSE: XMG) is a diversified Canadian mining company listed on the Canadian Securities Exchange. MGX is engaged in the acquisition and development of industrial mineral deposits in western Canada that offer near-term production potential, minimal barriers to entry and low initial capital expenditures.
The Company's flagship project is the Driftwood Creek magnesium project in the East Kootenay region of British Columbia. The long-term strategic business objectives of the Company include constructing a quarry mine and processing plant to produce magnesium oxide from Driftwood Creek. The Driftwood Creek project is currently under permitting review for granting of a mining lease and applications for associated operating permits are in various stages of preparation. MGX owns the majority of significant magnesite properties in the Province of British Columbia as reported by the British Columbia Geological Service (British Columbia Mineral Titles Branch).
For more information please visit the Company's website at www.mgxminerals.com.
| Contact Information | |
| Jared Lazerson | Dr. Michael Reimann |
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This press release contains forward-looking information or forward-looking statements (collectively "forward-looking information") within the meaning of applicable securities laws. Forward-looking information is typically identified by words such as: "believe", "expect", "anticipate", "intend", "estimate", "potentially" and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking information provided by the Company is not a guarantee of future results or performance, and that actual results may differ materially from those in forward-looking information as a result of various factors. The reader is referred to the Company's public filings for a more complete discussion of such risk factors and their potential effects which may be accessed through the Company's profile on SEDAR at www.sedar.com.
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