MGX Minerals Closes Final Tranche of $12.9m Private Placement

By Dipo Olowookere

Leading diversified Canadian mining company engaged in the development of large-scale industrial mineral portfolios, MGX Minerals, has announced closing the second and final tranche of a non-brokered, private placement for 2,434,716 flow through units at a price of $1.05 per unit for gross proceeds of $2.6 million.

The aggregate gross proceeds raised under the exercise was $5.8 million through the issuance of an aggregate of 5.5 million units.

The offering was made concurrently with a private placement of non-flow through units (NFT Units), which raised aggregate gross proceeds of $7.1 million.

Each unit is comprised of one Common Share issued on a flow-through basis pursuant to the Income Tax Act (Canada) and one-half of one Common Share purchase warrant (each whole warrant, a FT Warrant).

Each FT Warrant will entitle the holder to acquire one additional Common Share, on a non-flow through basis, for a period of 36 months at a price of $1.15.

The FT Unit proceeds will be used for qualified mineral exploration expenses on the Company’s projects in Canada.

In connection with the private placements for NFT Units and FT Units, the Company paid a finder’s fee to EMD Financial Inc. (EMD) equal to a cash payment of 8% of the gross proceeds raised from purchasers of the NFT and FT Units introduced to the Company by EMD, common shares of the Company equal to 4% of the total number of NFT and FT Units sold to purchasers introduced by EMD, and non-transferable warrants equal to 4% of the total number of NFT and FT Units sold to purchasers introduced by EMD (the Finder Warrants).

Each Finder Warrant entitles the holder to purchase one common share at a price of CA$1.15 for a period of 36 months following the closing date.

In connection with the NFT and FT Unit financings, EMD received a total of $722,740.27 in commission, 439,556 finder’s shares and 439,556 Finder’s Warrants. EMD also received a corporate finance fee of $50,000.

The securities issued pursuant to the Offering and the other above matters are subject to a hold period of four months and one day.