Margaux Resources Ltd. Announces Drilling Update; Non-Brokered Private Placement of Flow-Through Shares and Units; Change to Board of Directors; and Granting of Stock Options
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NEWS RELEASE
Margaux Resources Ltd. Announces Drilling Update; Non-Brokered Private
Placement of Flow-Through Shares and Units; Change to Board of Directors; and
Granting of Stock Options
CALGARY, ALBERTA -- (July 23, 2018)
Margaux Resources Ltd. (TSX VENTURE:MRL, OTCQB:MARFF) ("Margaux" or the "Company") is pleased to announce
that it has commenced drilling on the Company’s Sheep Creek Gold District and, subject to TSX Venture Exchange
approval, it intends to issue, pursuant to a non-brokered private placement, up to:
• 833,333 units (“Units”) of the Company at a price of $0.18 per Unit; and
• 3,260,869 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. 23 per Flow-Through
Share, for aggregate gross proceeds of up to $900,000 (the “Offering”).
Drilling Update
Margaux has commenced a minimum 2,000 m drill program to test gold targets on the Bayonne property, part of
the Company’s Sheep Creek Gold District. Additional drilling is planned later in the summer on other targets within
the Sheep Creek Gold District.
Private Placement
Each Unit will consist of one Common Share and one Common Share purchase warrant ("Warrant"). Each Warrant
will entitle the holder to acquire one Common Share (each a “Warrant Share”) at an exercise price of $0. 30 per
Warrant Share until 4:30 pm (Calgary time) on that date that is 24 months from the issuance closing date, (the “Expiry
Time”) subject to accelerated expiry, if the 20 -day Volume Weighted Average Price of the Common Shares on the
TSX Venture Exchange exceeds $0.40 per share.
Pursuant to the Offering Margaux will also issue Flow-Through Shares for gross proceeds of up to $750,000. Closing
of the Offering is expected to occur on or before September 6, 2018.
“Margaux plans to use the funds raised to further our exploration drilling, enabling us to continue testing gold targets
on the Sheep Creek Gold District, as well as to complete geological mapping and other preparatory studies in advance
of an anticipated F all drill program on the Kootenay Arc Zinc District”, commented Company President and CEO,
Tyler Rice.
Proceeds of the Offering will be used to pursue the Compan y’s ongoing exploration and drilling programs and for
general working capital. The securities issued pursuant to the Offering are subject to a four month hold period under
applicable securities laws. In connection with the Offering, certain finders may rec eive a cash fee and/or non -
transferable finder Warrants.
Board of Directors
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Margaux is pleased to announce the appointment of Mr. Chris Stewart as an Independent Director effective July 11,
2018. He originally joined the Company’s advisory committee in November 2016. Mr. Stewart brings over 2 6 years
of diversified experience in the mining industry, 15 years working with mining contractors and 11 years working with
mining companies. He is currently the President and CEO of Treasury Metals Inc. (TSX-TML).
Prior to joining Treasury Metals, Mr. Stewart was the Vice President of Operations for Kirkland Lake Gold, where he
was responsible for mining and milling operations of the company. Before joining Kirkland Lake Gold, he served as
President and CEO of Liberty Mines Inc., as well as serving in various positions at BHP Billiton, DMC Mining Services
and Lake Shore Gold Corporation.
"Chris is a valuable addition and an excellent complement to our Board given his extensive mining experience. We
believe his guidance, governance experience and record of delivering operational excellence and corporate growth
will further support Margaux’s consolidation and development strategy through good governance and guidance"
stated Margaux’s Chairman, Jim Letwin.
Mr. Stewart will be replacing Mr. Edward Lawrence who will be stepping down from the Board after four years as a
Director with the Company and many decades of involvement with the Company assets. Mr. Lawrence’s extensive
knowledge of the Kootenay Arc and deca des of working experience on the Jersey-Emerald mine were invaluable to
Margaux’s entry into the region and in establishing the focus of the Company’s exploration program.
Mr. Letwin commented, “We want to thank Ed for his time at Margaux and his passionate efforts in growing and
developing the Company’s exploration program and asset knowledge. We wish him all the best in his well-deserved
retirement.”
Options
Finally, the Company has granted an aggregate of 1,340,000 Common Share purchase options in accordance with
the Company’s shareholder approved stock option plan . These stock options include 670,000 options to directors,
being Messrs. James Letwin, Robert Derkitt , Douglas Foster and Chris Stewart; 200,000 to officers, being Ms. Linda
Caron and Messrs. Tyler Rice and Don Nguyen; 345,000 to the advisory committee; and the balance to consultants.
The stock options are exercisable at a price of $0.25 per share and expire in five years. The options will vest over a
period of three years, with 1/3 of the options vesting immediately, and 1/3 vesting at the end of each the first and
second anniversary of the date of grant.
About Margaux Resources Ltd.
Margaux Resources Ltd. (TSX.V: MRL, OTCQB: MARFF) is a mineral acquisition and exploration Company focused on
the development of gold , zinc and tungsten deposits in the Kootenay Arc, in the southeastern region of British
Columbia. The Company is directed by a group of highly successful Canadian business executives and is focused on
exploration of the Company’s Kootenay Arc Zinc District, and Sheep Creek Gold District.
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, market conditions and the Company's reasonable commercial efforts
regarding financing activities, the ability to close the Offering in the amount anticipated or at all, the use of proceeds
of the Offering 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.
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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.
CONTACT INFORMATION
Margaux Resources Ltd.
Tyler Rice
President, CEO and a Director
(403) 537-5590