VANCOUVER, British Columbia, Sept. 01, 2016 (GLOBE NEWSWIRE) -- MX Gold Corp. (TSX-V:MXL) (Frankfurt:ODV) (OTCQX:MXLGF) (the “Company” or “MX Gold”) is pleased to announce that, further to its news release dated August 23, 2016, it closed a private placement and raised gross proceeds of $1,698,470 on August 31, 2016. On the closing date, MX Gold issued 6,065,966 units at a price of $0.28 per unit, each unit consisting of one common share and one share purchase warrant, which entitles the holder to purchase one additional common share at a price of $0.50 for a period of three years.
An insider of the Company subscribed for a total of 160,000 units under the financing, which is a “related party transaction” within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The issuance to the insider is exempt from the valuation requirement of MI 61-101 by virtue of the exemption contained in section 5.5(b) as the Company’s shares are not listed on a specified market and from the minority shareholder approval requirements of MI 61-101 by virtue of the exemption contained in section 5.7(a) of MI 61-101 in that the fair market value of the consideration of the shares issued to the related party did not exceed 25% of the Company’s market capitalization.
In connection with the closing of the financing, MX Gold paid cash finder’s fees of $20,627 and issued 73,669 finder’s warrants which had the same terms as warrants issued in the financing. All securities issued in connection with the financing are subject to a statutory hold period expiring on January 1, 2017.
None of the securities issued in connection with the financing will be registered under the United States Securities Act of 1933, as amended (the “1933 Act”), and none of them may be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act. This news release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there by any sale of the securities in any state where such offer, solicitation, or sale would be unlawful.
About MX Gold
MX Gold Corp. is a junior mining company focused on the mining, exploration and development of advanced projects located in the Kootenay region of British Columbia. The Company’s primary focus is its high-grade Willa gold and copper project located 12 kilometers south of Silverton, B.C. In 2015, MX Gold Corp. completed the accretive acquisition of the Willa project and the Max Molybdenum Mine and Mill Complex. This acquisition removed major costs and shortened timelines typically associated with mine project development with planned ore shipment from Willa to the Max Mill. The Willa mine is located 135 kilometers south of the Max Mill. MX Gold Corp. can also elect to reopen the Max Molybdenum mining operation once world Moly prices improve.
On behalf of the Board of Directors,
Akash Patel, Vice President and Director, MX Gold Corp.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information, please contact Skanderbeg Capital Advisors 604-687-7130 Ext 203 Dan Omeniuk, CEO Email: email@example.com Ron Birch Phone: 250-545-0383 Toll Free: 1-800-910-7711 Fax: 604-926-4232 Or by email to: firstname.lastname@example.org
Source:MX Gold Corp.