Mr. Nelson Baker reports
MINERAL MOUNTAIN RESOURCES LTD. ANNOUNCES C$3,040,000 PRIVATE PLACEMENT EQUITY FINANCING
Mineral Mountain Resources Ltd. has entered into an engagement letter with a syndicate of agents led by Canaccord Genuity Corp. and including Industrial Alliance Securities Inc. to sell on a commercially reasonable efforts basis up to two million units at a price of 50 cents per unit and up to 3.4 million flow-through common shares at a price of 60 cents per flow-through share for total gross proceeds of up to $3.04-million. In addition, the company will grant the agents an overallotment option, exercisable 48 hours prior to the closing of the offering, to sell, in any combination of units and flow-through shares an additional 15% of the offering.
Each Unit shall consist of one common share of the Company and one half of one common share purchase warrant (each whole warrant, a "Warrant"). Each whole Warrant shall be exercisable into one common share of the Company for a period of 24 months from closing at an exercise price of C
.60 in the first year and C
.70 in the second year.
As consideration for the services of the Agents, the Agents will receive 7% of the gross proceeds raised in the Offering, payable in cash, and that number of warrants (the "Agent Warrants") equal to 7% of the securities sold under the Offering. Each whole Agent Warrant shall be exercisable into one common share of the Company for a period of 24 months from closing at an exercise price of C
.60 in the first year and C
.70 in the second year.
The funds raised from the issuance of the Units will be used for exploration of its mineral properties and for general working capital purposes and the funds raised from the issuance of the Flow-Through Shares will be used for general exploration expenditures, which will constitute Canadian exploration expenses (as defined in the Income Tax Act).
We seek Safe Harbor.