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MGX Minerals Announces Closing of Final Tranche of $12.9M Private Placement of Flow Through and Non Flow Through Units

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.


VANCOUVER, BRITISH COLUMBIA
/ December 28, 2017 / MGX Minerals Inc. (“MGX” or the “Company”) (CSE: XMG / FKT: 1MG / OTC: MGXMF) is pleased to announce that it has closed the second and final tranche of a non-brokered, private placement for 2,434,716 flow through units ("FTUnits") at a price of $1.05 per FT Unit for gross proceeds of $2,556,451.80 (the “Offering”). The aggregate gross proceeds raised under the Offering was $5,803,253.40 through the issuance of an aggregate of 5,526,908 FT Units. The FT Offering was made concurrently with a private placement of non flow through units (“NFT Units”), which raised aggregate gross proceeds of $7,137,000 (see press release dated December 21, 2017).

Each FT Unit is comprised of one Common Share issued on a flow-through basis pursuant to the Income Tax Act (Canada) and one-half of one Common Share purchase warrant (each whole warrant, a “FT Warrant”). Each FT Warrant will entitle the holder to acquire one additional Common Share, on a non-flow through basis, for a period of 36 months at a price of $1.15.

The FT Unit proceeds will be used for qualified mineral exploration expenses on the Company’s projects in Canada.

In connection with the private placements for NFT Units and FT Units, the Company paid a finder's fee to EMD Financial Inc. (“EMD”) equal to a cash payment of 8% of the gross proceeds raised from purchasers of the NFT and FT Units introduced to the Company by EMD, common shares of the Company equal to 4% of the total number of NFT and FT Units sold to purchasers introduced by EMD, and non-transferable warrants equal to 4% of the total number of NFT and FT Units sold to purchasers introduced by EMD (the “Finder Warrants”). Each Finder Warrant entitles the holder to purchase one common share at a price of CA$1.15 for a period of 36 months following the closing date. In connection with the NFT and FT Unit financings, EMD received a total of $722,740.27 in commission, 439,556 finder’s shares and 439,556 Finder’s Warrants. EMD also received a corporate finance fee of $50,000.

The securities issued pursuant to the Offering and the other above matters are subject to a hold period of four months and one day.