Thunder Bay, Ontario CANADA, February 09, 2012 /FSC/ - Mega Precious Metals Inc. (MGP - TSX Venture), ("Mega" or the "Corporation") is pleased to announce, that, further to the press releases dated August 26, 2011 and November 11, 2011, it has entered into a subscription agreement in connection with the previously announced private placement with the Red Sucker Lake First Nation ("RSLFN").
RSLFN is participating in a non-brokered private placement (the "Offering") of 786,000 units of the Corporation ("Units") through a trust for the benefit of the RSLFN at a price of $0.51 per Unit for gross proceeds of approximately $400,000. Each Unit will be comprised of one common share of the Corporation (collectively the "Unit Shares") and one-half of one share purchase warrant of the Corporation (each whole warrant, a "Warrant"). Each Warrant will be exercisable to purchase one common share of the Corporation (a "Warrant Share") for period of three years from the closing of the private placement at an exercise price of $ 0.76. The Unit Shares will be subject to a resale restriction and released over a 27 month period from the date of closing of the private placement subject to certain exceptions.
The gross proceeds of the Units sold under the private placement will be used in connection with the Monument Bay Project for costs associated with initiatives involving RSLFN.
The completion of the private placement is subject to, among other things, the final approval of the TSX Venture Exchange. The private placement is scheduled to close on or about February 28, 2012. The Units and the Warrants issued under the private placement will be subject to a statutory hold period of four months and one day after the date of closing of the private placement.
Mega recognizes the value that local communities, including First Nation communities, bring to project development. Mega remains committed to engaging local communities, including First Nation communities, in the area. Mega welcomes the opportunity of the local community as a stakeholder and looks forward to exploring mutually beneficial development at Monument Bay.
Mega Precious Metals Inc. is a well financed Canadian-based mineral exploration company with several projects in Northwestern Ontario, Manitoba and Nunavut. The Company is committed to an accelerated growth strategy and is backed by a team of experienced mining experts and a strong financial position. The Company is poised for rapid expansion through quick response to new opportunities and changes in the market. Mega's common shares trade on the TSX Venture Exchange under the symbol MGP.
For further information, please contact:
Mega Precious Metals Inc.
Jim Rogers, President and Chief Executive Officer
O: 807-766-3380
TF: 877-592-3380
info@megapmi.com
Forward-looking Information
This news release includes certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements about the use of proceeds from the Offering, strategic plans, spending commitments, future operations, future work programs and objectives. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information, including the risks identified in Mega's annual information form under the heading "Risk Factors". There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. Mega disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has reviewed or accepts responsibility for the adequacy or accuracy of this release.
THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT AUTHORIZED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Shares Issued: 92,783,580
To view this press release as a web page, click onto the link below:
www.usetdas.com/PR/megaprecious09022012.htm
Maximum News Dissemination by Filing Services Canada Inc. http://www.usetdas.com
There are no comments yet