Meadow Bay Gold Closes Private Placement
Vancouver, BC / TheNewswire / March 7, 2016 - Meadow Bay Gold Corp. ("Meadow Bay Gold" or the "Company") (TSX: MAY) (OTCQB: MAYGF) (Frankfurt: 20M, WKN A1C3DN) announces the closing of a non-brokered private placement financing (the "Private Placement") consisting of the sale of 5,080,000 units ("Units") at a price of $0.05 per Unit, raising gross proceeds of $254,000. Each Unit consists of one common share of the Company and one warrant (a "Warrant") exercisable to purchase an additional common share of the Company at a price of $0.06 per share for a period of five years.
Christopher Crupi, the President, Chief Executive Officer and a director of the Company, subscribed for 1,750,000 Units for a subscription price of $87,500, which amount is less than 25% of the Company's market capitalization. As such, the Company has relied upon exemptions from the valuation and minority shareholder approval requirements contained in sections 5.5(a) and 5.7(1)(a) of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions. The Company completed the Private Placement prior to filing a material change report as a result of working capital requirements.
The Company paid a finder's fee to Canaccord Genuity Corp. equal to 7% in cash and 128,100 finder's warrants ("Finder's Warrants") in respect of a portion of the Private Placement. Each Finder's Warrant entitles the holder to purchase one common share of the Company at a price of $0.065 per share for a period of five years.
All securities issued pursuant to the private placement are subject to a four-month hold period. Net proceeds from the Private Placement will be used for general working capital.
For further information please contact:
Meadow Bay Gold Corp. www.meadowbaygold.com
Christopher Crupi, CEO
Charles "Bill" Reed, Director
Tel: 604-641-4450
Matthew Harrington, Launch IR
Tel: 613-882-7467
Copyright (c) 2016 TheNewswire - All rights reserved.