Toronto, Ontario (FSCwire) - Murchison Minerals Ltd. (“Murchison” or the
“Company”) (CSE: MUR) is pleased to report that it has closed a $1,307,000 second tranche (“Second
Tranche”) of its previously announced (see July 21, 2016 press release) non-brokered private placement (the
“Offering”) through the issuance of 1,160,000 units (each a “Unit”) for gross proceeds of
$290,000 and 3,390,000 flow through units (each an “FT Unit”) for gross proceeds of $1,017,000. The
Company also announces that the proposed Offering of $2,000,000 consisting of 4,000,000 post-Consolidation common share units and
3,333,333 post-Consolidation flow-through units was increased to $2,567,770 consisting of 5,263,000 Units and 4,173,400 FT
Units.
Each Unit was issued at a price of $0.25 and consists of one common share (a “Common Share”) and
one common share purchase warrant (a “Warrant”) exercisable at a price of $0.30 for 24 months. Each FT
Unit was issued at $0.30 and consists of one common share issued on a “flow through” basis and one half of a Warrant. For the
Second Tranche, the Company issued 2,855,000 whole Warrants entitling the holder to purchase one common share at an exercise
price of $0.30 until August 31, 2018. All securities issued under the Offering are subject to a hold period expiring on
January 1, 2017.
The proceeds from the Offering will be used by the Company to fund the exploration of its 100% owned high-grade
Brabant-McKenzie zinc-copper-silver deposit in central Saskatchewan, for general administration and working capital purposes.
In connection with the closing of the Second Tranche, certain eligible persons (“Finders”) were
paid a cash commission equal to 7% of the proceeds raised from subscribers introduced to the Company by such Finder in the amount
of $84,840 and the Company also issued an aggregate of 292,600 broker warrants, each broker warrant entitling the holder to
acquire one common share at a price of $0.30 until August 31, 2018.
Following the closing of the Offering (and the consolidation of its common share on August 10, 2016), the Company
currently has 25,290,095 common shares outstanding.
EARLY WARNING NOTICES
Prior to the completion of the Second Tranche, Robert McEwen, an insider of the Company owned directly and
indirectly 3,597,500 common shares of the Company representing approximately 17.35% of the Company’s issued and outstanding
common shares on a non-diluted basis. Upon completion of the Second Tranche, Mr. McEwen owns, directly and indirectly, 3,597,500
common shares of the Company representing approximately 14.22% of the Company’s issued and outstanding common shares on a
non-diluted basis. If Mr. McEwen was to exercise all of his convertible securities, he would own, directly and indirectly,
3,997,500 common shares, representing approximately 15.56% of the Company’s then outstanding common shares, on a partially
diluted basis.
Prior to the completion of the Second Tranche, Donald K. Johnson, a director of the Company owned directly and
indirectly 5,528,495 common shares of the Company representing approximately 26.66% of the Company’s issued and outstanding
common shares on a non-diluted basis. Upon completion of the Second Tranche, Mr. Johnson owns, directly and indirectly, 5,528,495
common shares of the Company representing approximately 21.86% of the Company’s issued and outstanding common shares on a
non-diluted basis. If Mr. Johnson was to exercise all of his convertible securities, he would own, directly and indirectly,
8,728,495 common shares, representing approximately 30.64% of the Company’s then outstanding common shares, on a partially
diluted basis
Depending on market and other conditions, or as future circumstances may dictate, Mr. McEwen and Mr. Johnson may
from time to time increase or decrease their holdings of common shares or other securities of the Company. This portion of the
news release is issued pursuant to National Instrument 62-103 - The Early Warning System and Related Takeover Bid and Insider
Reporting Issues of the Canadian Securities Administrators, which also requires an early warning report to be filed with the
applicable securities regulators containing additional information with respect to the foregoing matters. A copy of Mr. McEwen’s
and Mr. Johnson’s early warning reports in respect of this transaction will be available on the Company’s issuer profile on SEDAR
at www.sedar.com.
About Murchison
Murchison is a Canadian based exploration company with a diversified portfolio of properties, including the high-grade
Brabant-McKenzie zinc-copper-silver deposit in north-central Saskatchewan, the HPM Nickel/Copper/Cobalt project in Quebec and
holds gold claims in the Pickle Lake area of northwestern Ontario. Murchison also owns the Cloridorme high alumina shale
formation, which is contiguous and essentially an extension of the Marin deposit of Orbite Technologies Inc. located on the Gaspe
Peninsula in eastern Quebec.
Additional information about Murchison and its exploration projects can be found at www.murchisonminerals.com.
Kent Pearson, President and Chief Executive Officer
or
Erik Martin, Chief Financial Officer
at
info@murchisonminerals.com
(416) 350 - 3776
Forward-Looking Information
Certain information set forth in this news release may contain forward-looking information that involves substantial known
and unknown risks and uncertainties. This forward-looking information is subject to numerous risks and uncertainties, certain of
which are beyond the control of the Company, including, but not limited to, the impact of general economic conditions, industry
conditions, and dependence upon regulatory approvals. Readers are cautioned that the assumptions used in the preparation of such
information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance
should not be placed on forward-looking information. The parties undertake no obligation to update forward-looking information
except as otherwise may be required by applicable securities law.
NEITHER THE CSE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE CSE) ACCEPTS
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS PRESS RELEASE.
To view this press release as a PDF file, click onto the following link:
public://news_release_pdf/Murchison08312016.pdf
Source: Murchison Minerals Ltd. (CSE:MUR)
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