Magnum raises non-flow-through financing to $500,000
2021-09-02 10:38 ET - News Release
Mr. Douglas Mason reports
MAGNUM GOLDCORP INC. INCREASES NON-BROKERED PRIVATE PLACEMENT
Further to its news release of Aug. 18, 2021, and subject to regulatory approval, Magnum Goldcorp Inc. has increased its non-flow-through non-brokered private placement to raise up to $500,000 by the issuance of 10 million non-flow-through units at five cents per NFT unit. Each NFT unit will consist of one common share and one share purchase warrant, with each warrant entitling the holder to purchase an additional common share for a period of five years at an exercise price of 10 cents. The flow-through private placement remains the same as announced to raise up to $360,000 by the issuance of six million flow-through shares at six cents per FT share. The warrants are subject to an acceleration right that allows the company to give notice of an earlier expiry date if the company's share price on the TSX Venture Exchange is equal to or greater than 25 cents for a period of 20 consecutive trading days. With respect to these private placements, the company may pay finders' fees in the amount of 10 per cent, payable in cash or NFT units, based on the sale of the FT shares and NFT units purchased by subscribers introduced to the company by such finders.
The company intends to use the proceeds from these private placements for further exploration on its LH property and for general working capital purposes.
Magnum has applied for a two-year multiyear area-based (MYAB) work permit for its LH property which is in the final stages of review by the Ministry of Energy and Mines and Petroleum Resources. The company anticipates receiving the work permit for the LH property in fall, 2021.
The proposed 2021 program emphasizes work in anticipation of determination of an initial resource estimate. Approximately 1,100 metres of drilling are proposed, together with acquisition of magnetic susceptibility and specific gravity measurements from archived drill core. Magnetic susceptibility data will be used in additional processing of existing geophysical to develop 3-D magnetic inversion models with which to develop and confirm subsurface drill targets.
The LH underground workings exposed a pyrrhotite-enriched, gold-bearing vein system, subsequently confirmed by 16 diamond drill holes completed in 2015 and 2017 (see the company's news releases dated Aug. 18, 2015, and Feb. 8, 2018, respectively). The company believes there is a positive correlation between pyrrhotite content and gold grades, with pyrrhotite-rich magnetic anomalies and/or subsurface drill intercepts correlated to high-grade gold.
The LH property is a gold exploration property consisting of 19 contiguous Crown granted claims and seven mineral claims, located approximately seven km south of Silverton, B.C., on the east side of Slocan Lake. Access to the LH property is via Highway 6 for 1.1 km south of Silverton and then via Red Mountain Road for 1.6 km to the Hewitt Mine Road, and then along a four-wheel drive road along Fingland Creek for approximately five km.
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