VANCOUVER, BRITISH COLUMBIA / April 18, 2016 / MGX Minerals Inc. (“MGX” or the “Company”) (CSE: XMG / FKT: 1MG) is pleased to announce that it intends to complete a non-brokered private placement (the “Private Placement”) for up to 5,000,000 Units (“Units”) at a price of CAD$0.10 per Unit for gross proceeds of CAD$500,000. Each Unit will be comprised of one common share and one common share purchase warrant. Each warrant is exercisable into one common share at a price of CAD$0.15 for a period of two years from the closing date of the Private Placement.
Proceeds from the Private Placement will be used for lithium exploration and development, Private Placement expenses, maintenance of MGX’s assets, payment of liabilities, and general working capital requirements.
Closing of the Private Placement is conditional upon satisfactory due diligence of MGX by the investors and compliance with all regulatory requirements. The principle investors are Dr. K. Sethu Raman, Robert Hirschberg and Sam Sahota.
The securities issued in connection with the Private Placement will be subject to a four-month hold period, in accordance with applicable securities laws.