NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
VANCOUVER, BRITISH COLUMBIA / September 21, 2016 / MGX Minerals Inc. (“MGX” or the “Company”) (CSE: XMG / FKT: 1MG / OTC: MGXMF) announces the expiry of its previously announced rights offering. All unexercised rights expired at 2:00 p.m. (Vancouver time) on September 16, 2016 (the “Expiry Time”) and are void and of no value. Details of the rights offering are set out in the rights offering notice dated July 28, 2016, and the rights offering circular dated July 28, 2016, which are available under the Company’s profile at www.sedar.com.
Under the rights offering, 27,038,068 rights were exercised prior to the Expiry Time under the basic stand-by privilege entitling the holders thereof to acquire an aggregate of 6,759,516 units of the Company (“Units”), and 3,303,212 Units were subscribed for by rights holders under the additional subscription privilege, for a price of $0.18 per Unit and for gross proceeds to the Company of $1,811,291. Each Unit consists of one common share and one-half of one purchase warrant, with each whole warrant exercisable into one common share at a price of $0.20 per share for a period of 24 months from the issuance date of the Units.
In addition, in accordance with the terms of the rights offering and the soliciting dealer agreement with Mackie Research Capital Corporation (“MRCC”), MRCC will receive the balance of its corporate finance fee of $8,750 plus reasonable taxes and disbursements and a soliciting dealer’s fee of 8% of the aggregate gross proceeds raised under the rights offering totaling $144,903. MRCC will also be issued an option entitling it to acquire 1,422,939 Units at an exercise price of $0.18 per Unit for a period of 24 months following the closing date.
Closing of the rights offering is expected to be completed at 10:00 a.m. (Vancouver time) on September 21, 2016. After issue of the Units under the rights offering, the Company will have 51,815,745 common shares issued and outstanding. The net proceeds of the offering available to the Company will be $1,639,068, which will be allocated to the development of the Company’s lithium properties and Driftwood Creek property and for general working capital purposes.