MGold Resources Completes Brokered Private Placement and Concludes an Option Agreement on the Silver Queen and Klondyke Silver-Gold Properties, Nevada
ca.finance.yahoo.com
On Friday September 16, 2011, 10:45 am EDT
MONTREAL, QUEBEC--(Marketwire - Sept. 16, 2011) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
MGold Resources Inc. ("MGold" or the "Corporation") (TSXV: MNI.V) is pleased to announce the completion of a brokered private placement previously announced on July 26, 2011 of common shares (the "Common Shares"). 20,300,000 Common Shares at a purchase price of $0.10 per Common Share have been issued for total gross proceeds of $2,030,000 (the "Offering").
All securities issued in the course of the Offering will be subject to a hold period of four months and one day.
As consideration for the services rendered in connection with the Offering, Macquarie Private Wealth Inc. (the "Agent"), acting as lead agent, received a cash commission of $49,030, was issued 1,492,700 Common Shares as well as 1,755,000 agent's options (each an "Agent's Option"). Also as consideration for services rendered in connection with the Offering, an aggregate of an additional 228,000 Agent's Options were issued to certain sub-agents of the Agent. Each Agent's Option entitles its holder thereof to purchase one Common Share of MGold at the price of $0.10 per Common Share for a period of 24 months following the closing date.
The Corporation is also pleased to announce that it has entered into a definitive option agreement (the "Option Agreement") with Silver Reserve Corp., a wholly-owned subsidiary of Infrastructure Materials Corp. (OTCBB:IFAM). Pursuant to the terms of the Option Agreement, the Corporation has the option to acquire a 50% undivided interest in the Silver Queen property (the "Silver Queen Property") by incurring exploration expenditures totaling $4 million over a 30-month period pursuant to the following schedule: $750,000 after 6 months; $650,000 after 12 months, $850,000 after 18 months, $1,150,000 after 24 months and $600,000 after 30 months and by making cash payments of an aggregate amount of $2,000,000 over a 27 month period pursuant to the following schedule: $150,000 upon completion of the Offering; $130,000 after 6 months; $170,000 after 12 months; $200,000 after 18 months; $350,000 after 24 months and $1,000,000 after 27 months.
Pursuant to the Option Agreement, the Corporation also has the option to acquire a 50% undivided interest in the Klondyke property (the "Klondyke Property") by incurring exploration expenditures totaling $1,350,000 over a 30-month period: $250,000 after 6 months; $250,000 after 12 months, $250,000 after 18 months, $300,000 after 24 months and $300,000 after 30 months and by making cash payments of $265,000 over a 27 month period: $30,000 upon completion of the Offering; $25,000 after 6 months; $25,000 after 12 months; $30,000 after 18 months; $30,000 after 24 months and $125,000 after 27 months.
The Corporation intends to use the net proceeds of the Offering primarily to incur exploration expenditures as consideration for the acquisition of the Silver Queen and Klondyke Properties and for working capital and general corporate purposes.
The completion of the transactions contemplated in the Option Agreement and the Offering are subject to the final approval of the TSX Venture Exchange.
MGold is engaged in mineral exploration for precious and base metals. The Corporation holds a 85.1% interest in the Burchell Lake property which is prospective for gold, copper, zinc and molybdenum, in the Shebandowan area of Northwestern Ontario.
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.
Contacts
Joel Scodnick
MGold Resources Inc.
President and Chief Executive Officer
(705) 522.4439
(705) 522.8694 (FAX)
joelscodnick@me.com
Marc Poitras
MGold Resources Inc.
Chief Financial Officer and Director
(705) 222-1700
(705) 222-1701 (FAX)
marc@poitrasca.ca
www.mgold.ca |
