CALGARY, ALBERTA — (The Newswire – March 9, 2017)
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OF AMERICA.
Margaux Resources Ltd. (TSX VENTURE:MRL, OTCQB:MARFF) (“Margaux” or the “Company”) is pleased to announce that it has closed the first tranche of its previously announced non-brokered private placement (the “Offering”) by issuing:
• 4,876,661 units (“Units”) of the Company at a price of $0.30 per Unit for aggregate gross proceeds of $1,462,998; and
• 1,237,998 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 of $445,679.
Each Unit consists of one Common Share and one-half of one Common Share purchase warrant (each whole warrant, a “Warrant”). Each whole Warrant will expire 24 months from the closing date of the Offering and will entitle the holder to acquire one Common Share of the Company at a price of $0.40 per Common Share. Gross proceeds raised under the first tranche of the Offering are $1,908,678.
Proceeds of the Offering will be used to pursue the Company’s ongoing exploration and drilling programs at its Jersey-Emerald, Jackpot/Oxide, Sheep Creek and Bayonne properties in Salmo, BC and for general working capital.
The securities issued pursuant to the Offering are subject to a four-month hold period under applicable securities laws. The Company has agreed to pay a finder’s fee on certain subscriptions under the Offering in the amount of 6% cash on the proceeds received from certain subscribers and 6% finder’s warrants.
Finally, further to its press release dated February 9, 2017 and subject to receipt of all required regulatory approvals, the Company intends to amend the composition of the previously announced Offering to up to 12,500,000 Units and up to 3,472,222 Flow-Through Shares, for the same aggregate gross proceeds of up to $5,000,000 as a result of investor demand.
About Margaux Resources Ltd.
Margaux is a publicly traded polymetallic exploration company focused on the exploration and development of previously producing properties in the Kootenay Arc, located in southeastern British Columbia, including the Jackpot/Oxide, Jersey-Emerald, Sheep Creek and Bayonne properties, on which Margaux has options. The Company is directed by a group of highly successful Canadian business executives with proven track records. Margaux trades on the TSX Venture Exchange under the symbol MRL and on the OTCQB under the symbol MARFF.
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