MGX Minerals Inc. (
its news release dated June 5, 2018, it has closed its previously announced
non-brokered private placement financing for total gross proceeds of
$15,492,334.45 (the “Offering”).
Pursuant to the Offering, the Company issued 5,443,205 flow through units
(the “FT Units”) at $1.15 per FT Unit, representing gross
proceeds of $6,259,685.75, and 8,393,317 non flow through units (the “NFT
Units”) at $1.10 per NFT Unit, representing gross proceeds of
$9,232,648.70. The Offering was oversubscribed by 1,093,205 FT Units and
2,023,317 NFT Units.
Each NFT Unit is comprised 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 Company for a period of 36 months from the date of closing at an exercise
price of $1.20. Each FT 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 $1.20.
The securities issued under the Offering are subject to hold period of
four-months and one day. The FT Unit proceeds will be used for qualified
mineral exploration expenses on the Company’s projects in Canada. The NFT Unit
proceeds are expected to be used for advancement of the Company’s lithium and
magnesium assets, including continued investment into extraction equipment and
PurLucid, property payments and additional acquisitions, engineering studies,
permitting activities, and for general working capital.
In connection with the Offering, the Company will provide a finder’s fee
to EMD Financial Inc. (“EMD”) equal to a cash payment of 8% of
the gross proceeds of the Offering raised from purchasers introduced to the
Company by EMD, Common Shares equal to 4% of the total number of NFT Units and
FT Units sold to EMD purchasers, and non-transferable warrants equal to 4% of
the total number of NFT Units and FT Units sold to EMD purchasers (the “Finder
Warrants”). Each Finder Warrant will entitle the holder to purchase one common
share at a price of $1.20 for a period of 36 months following the closing date.
EMD also received a corporate finance fee of $50,000.
About MGX Minerals
MGX Minerals is a diversified Canadian resource company with interests in
advanced material and energy assets throughout North America. Learn more at www.mgxminerals.com.
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