CALGARY, ALBERTA -- (December 22, 2017)
Margaux Resources Ltd. (TSX VENTURE:MRL, OTCQB:MARFF) ("Margaux" or the "Company") is pleased to announce that the Company received in excess of the previously announced $3 million non-brokered private placement (please see press releases dated November 2, December 7 and December 14, 2017), and subject to receiving final regulatory approvals, has increased and closed the second tranche of the non-brokered private placement (the “Offering”) by issuing:
- 1,377,600 units (“Units”) of the Company at a price of $0.30 per Unit; and
- 3,076,521 common shares (“Common Shares”) of the Company issued on a “CEE flow-through” basis pursuant to the Income Tax Act (Canada) (“Flow-Through Shares”) at a price of $0.36 per Flow-Through Share, for aggregate gross proceeds raised under the second tranche of $1,520,828 (the “Offering”).
Gross proceeds raised under the first and second tranche of the Offering are $3.25 million.
Each Unit consists of one Common Share and one-half of one Common Share purchase warrant (each whole warrant a "Warrant"). Each Warrant will entitle the holder to acquire one Common Share (each a “Warrant Share”) at an exercise price of $0.40 per Warrant Share until 4:30 pm (Calgary time) on that date that is 24 months from the issuance closing date, (the “Expiry Time”) subject to accelerated expiry, if the 20-day volume weighted average price of the Common Shares on the TSX Venture Exchange exceeds $0.50 per share.
Proceeds of the Offering will be used to:
- Continue the Company’s ongoing exploration and drill programs at its Kootenay Arc project in Salmo, BC;
- Progress the Company’s tungsten tailings recycling project towards a pilot phase; and
- For general working capital.
“Our 2017 surface and drill program provided us with a wealth of new data on our properties. The funds from this raise will enable a full review of the data, high-grading the targets these programs identified ahead of a large 2018 spring drill program, as well as continue the evaluation of the tailings recycling with CRONIMET” commented Margaux’s President and CEO, Tyler Rice.
The securities issued pursuant to the Offering are subject to a four month hold period under applicable securities laws. In connection with the Offering, certain finders may receive a cash fee and/or non-transferable finder Warrants.
About Margaux Resources Ltd.
Margaux Resources Ltd. (TSX.V: MRL, OTCQB: MARFF) is a mineral acquisition and exploration Company focused on the development of zinc, gold and tungsten deposits in the Kootenay Arc, in the southeastern region of British Columbia. The Company is directed by a group of highly successful Canadian business executives and has a fast - growing portfolio of previously producing properties that include the Jersey-Emerald mine, which at one point was the 2nd largest historic zinc-lead mine in B.C. and the 2nd largest tungsten mine in North America.
Forward Looking Statements
This press release may contain forward looking statements including those describing Margaux's future plans and the expectations of management that a stated result or condition will occur. Any statement addressing future events or conditions necessarily involves inherent risk and uncertainty. Actual results can differ materially from those anticipated by management at the time of writing due to many factors, the majority of which are beyond the control of Margaux and its management. In particular, this news release contains forward-looking statements pertaining, directly or indirectly, to the following: Margaux's exploration plans and work commitments, the potential of mineral resources and potential for recovery thereof, as well as other market conditions and economic factors, business and operations strategies. Readers are cautioned that the foregoing list of risk factors should not be construed as exhaustive. These statements speak only as of the date of this release or as of the date specified in the documents accompanying this release, as the case may be. The Company undertakes no obligation to publicly update or revise any forward-looking statements except as expressly required by applicable securities laws.
Neither the 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.
Margaux Resources Ltd.
President, CEO and a Director