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THIS PRESS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES PRESS SERVICES OR US BROADCASTING.
VANCOUVER, British Columbia, November 28, 2018 (GLOBE NEWSWIRE) – MGX Minerals Inc. ("MGX" or the "Company") (CSE: XMG / FKT: 1MG / OTC: MGXMF) is pleased to announce that, in accordance with its press release dated November 23, 2018, it has closed the first tranche of its previously announced private placement financing without an intermediary (the "Offering").
The first tranche generated gross proceeds of $ 3,195,998.55 through the issuance of 3,070,767 flow-through units (the "FT units") at $ 0.65 per unit and 2,000,000 non-certificated shares ( "NFT units") at $ 0.60 per NFT unit. As part of the Offering, the Company expects to issue a maximum of 6,700,000 NFT Units and 6,155,000 FT Units.
Each NFT unit consists of one common share of the company (a "common share") and one common share purchase warrant (a "warrant"). Each warrant will entitle the holder to acquire one additional common share of the corporation for a period of 36 months from the closing date at an exercise price of $ 0.67. Each unit of FT is composed of one common share issued according to the mode of attachment under the Income Tax Act (Canada) and one-half warrant. of common shares (each warrant is a "warrant"). Each OTC Warrant will entitle the holder thereof to acquire one additional common share, without direction, for a period of 36 months at a price of $ 0.70.
Securities issued under the Offering will be subject to a holding period of four months and one day.
In connection with the Offering, the Company paid an investor fee to EMD Financial Inc. on the previously announced terms.
The proceeds of the FT unit will be used for qualifying mining exploration expenditures of the Company's projects in Canada. The proceeds from the NFT unit should be used to advance the Company's lithium and magnesium assets, including continued investments in extraction equipment and PurLucid, real estate payments and additional acquisitions, technical studies, licensing activities and for general working capital.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any 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 "US Securities Act") or any securities legislation, and may be offered or sold in the United States unless registered under the United States. The applicable securities law and securities laws of the state or an exemption from this registration is available.
About MGX Minerals
MGX Minerals is a diversified Canadian resource and technology company with interests in global advanced materials, energy and water assets. Learn more about www.mgxminerals.com.
Contact information
Jared Lazerson
President and CEO
Phone: 1.604.681.7735
Web: www.mgxminerals.com
Neither the Canadian Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) assumes any liability for the adequacy or accuracy of this press 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 generally 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 the 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 presented in the forward-looking information due to various factors. . The reader is referred to the Company's public filings for a more complete discussion of these risk factors and their potential effects, which can be accessed via the Company's profile on SEDAR at the following address: www.sedar.com.
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