Mustang Completes Flow-Through and Initial Hard Dollar Financing
TORONTO, ONTARIO -- (Marketwire) -- 01/07/11 -- Mustang Minerals Corp. (TSX VENTURE: MUM)(FRANKFURT: NJF) ('Mustang' or the 'Company') is pleased to announce that it has completed its private placement offering of flow-through common shares and an initial closing of its private placement offering of non-flow-through common shares.
Mustang raised aggregate gross proceeds of $ 3,586,175 in respect of the placement of an aggregate of 28,689,400 flow-through common shares. Finders fees of $218,200 and a total of 1,745,601 finders warrants were paid to eligible finders in connection with the flow-through offering. Each finders warrant entitles the holder to purchase one common share of the Company at an exercise price of $0.125 per share for a period of 18 months.
Mustang also closed an initial tranche of 4,065,000 non-flow-through shares for gross proceeds of $406,500. Finders fees of $26,423 in cash and a total of 264,225 finders warrants were paid to eligible finders in connection with the non-flow-through offering. Each finders warrant entitles the holder to purchase one common share of the Company at an exercise price of $0.10 per share for a period of 18 months. All securities issued under the offerings are subject to a hold period of four months and one day.
The gross proceeds of the flow-through share offering will be used for Canadian exploration expenses (within the meaning of the Income Tax Act) which qualify as 'flow-through mining expenditures' for purposes of the Income Tax Act related to the Company's mineral projects in Ontario and Manitoba, Canada. The Company will renounce such Canadian exploration expenses with an effective date of December 31, 2010. The net proceeds from the non-flow-through offering will be used for working capital purposes.
Mustang recently announced that it is proceeding with a full feasibility study at its Makwa Nickel Project located east of Winnipeg, Manitoba. Mustang also will commence exploration at its Mayville Project where the focus is copper nickel platinum group metals mineralization.
To find out more about Mustang Minerals Corp. (TSX VENTURE: MUM)(FRANKFURT: NJF) visit our website at www.mustangminerals.com.
We seek safe harbour.
This news release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of the Securities Act (Ontario) (together, 'forward-looking statements'). Such forward-looking statements may include the Company's plans for its mineral projects in Manitoba, the overall economic potential of its properties, the availability of adequate financing and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied by such forward-looking statements to be materially different. Such factors include, among others, risks and uncertainties relating to potential political risk, uncertainty of production and capital costs estimates and the potential for unexpected costs and expenses, physical risks inherent in mining operations, currency fluctuations, fluctuations in the price of nickel and other metals, completion of economic evaluations, changes in project parameters as plans continue to be refined, the inability or failure to obtain adequate financing on a timely basis, and other risks and uncertainties, including those described in the Company's Management Discussion and Analysis for the most recent financial period and Material Change Reports filed with the Canadian Securities Administrators and available at www.sedar.com.
Shares Outstanding: 127,352,633
Contacts:
Mustang Minerals Corp.
David Black
Investor Relations
416-955-4773
info@mustangminerals.com