VANCOUVER, BRITISH COLUMBIA / October 1, 2015 / MGX Minerals Inc. (“MGX” or the “Company”) (CSE: XMG / FKT: 1MG) announces the Company has closed the first tranche of its previously announced non-brokered Private Placement (the “Private Placement”) (see press release dated August 31, 2015) for total gross proceeds of CA$238,300.
The Company issued an aggregate of 472,364 units in connection with the first tranche of the Private Placement. A total of 42,364 units consisting of one flow-through common share and one common share purchase warrant were issued at a price of CA$0.55 per share for gross proceeds of CA$23,300, and a total of 430,000 units consisting of one common share and one common share purchase warrant were issued at CA$0.50 per share for a gross proceeds of CA$215,000. The newly issued shares are subject to a four month and one day hold period from the closing date. Any purchase warrants distributed in this first tranche shall be exercisable for 12 months from the grant date at an exercise price of $0.65.
The proceeds from the units containing flow-through common shares will be used to incur eligible Canadian Exploration Expenses, as defined under the Tax Act. The remaining proceeds will be used to settle outstanding debts for services and for general working capital purposes.
Palisade Capital Corp.
Palisade Capital Corp. was a participant in the Private Placement. Palisade is an offshore merchant banking group, specializing in high growth, small cap investments. Palisade has a global network of private equity groups, fund managers, high net-worth and retail investors which it uses to create strategic relationships to increase liquidity and source financing.