Minnova Corp. Announces Oversubscription of Previously Announced Non-Brokered Private Placement and Closes Third and Final Tranche
Minnova Corp. Announces Oversubscription of
Previously Announced Non-Brokered Private Placement
and Closes Third and Final Tranche
Toronto, Ontario--(Newsfile Corp. - December 18, 2017) - Minnova Corp. (TSXV: MCI) ("
Minnova
" or the "
Company
"), an
advanced-stage mining exploration and development company focused on the advancement and re-start of its 100% owned PL
Mine in central Manitoba, is pleased to announce that its previously announced non-brokered private placement offering (the
"
Offering
") of 1,538,462 flow-through units (the "
FT Units
") at a price of $0.65 per FT Unit (see news release dated November
20, 2017) has been over-subscribed, following the closing of the Company's third and final tranche (the "
Third
Tranche
"),
resulting in the issuance of an additional 532,769 FT Units of the Company.
In connection with the Third Tranche,
the Company issued an aggregate of 1,009,231 FT Units at a price of $0.65 per FT Unit for
gross proceeds of $656,000.15.
Each FT Unit consists of one common share (a "
Common Share
") of the Company and one-half of one common share
purchase warrant (each whole warrant, a "
Warrant
") with each Warrant entitling the holder thereof to purchase one Common
Share at an exercise price of $0.75 until June 11, 2019.
Each Common Share and Warrant comprising the FT Units will qualify
as a "flow through share" for purposes of the
Income Tax Act
(Canada). The Common Shares issuable upon exercise of the
Warrants will not qualify as "flow-through shares".
The Company paid to certain eligible persons (the "
F
inders
") a cash commission equal to 6% of the gross proceeds raised in
connection with the Third Tranche and issued an aggregate of 50,953 finder warrants (the "
Finder Warrants
") to such Finders,
with each Finder Warrant entitling the holder thereof to acquire one Common Share of the Company at a price of $0.65 until
June 11, 2019.
Aggregate gross proceeds raised by the Company pursuant to the Offering was $1,346,300.15.
The Company intends to use the net proceeds of the Offering for work programs related to advancement and re-start of mining
operations at the Company's PL Mine, as well as for general working capital purposes.
All securities issued in connection with
the Offering are subject to a statutory four month hold period.
The Offering is subject to final acceptance of the TSX Venture
Exchange.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States.
The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S.
Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons as
defined under applicable securities laws unless registered under the U.S. Securities Act and applicable state securities laws or
an exemption from such registration is available.
About Minnova Corp.
Minnova Corp. is an emerging Canadian gold producer focused on re-starting the PL Gold Mine and expanding gold resources
on its PL and Nokomis gold deposits. The Company has completed a Positive Feasibility Study in support of re-starting the PL
Mine at an average annual production rate of 46,493 ounces over a minimum 5 year mine life.
The resource remains open to
expansion and future surface exploration work programs will target resource expansion. The PL Gold Mine has a relatively short
pre-production timeline forecast at 15 months, benefits from a valid underground mining permit (Environment Act 1207E), an
existing processing plant, over 7,000 meters of developed underground ramp to -135 metres depth, is fully road accessible and
close to existing mining infrastructure in the prolific Flin Flon — Snow Lake Greenstone Belt of Central Manitoba.
For more information please contact:
Minnova Corp.
Gorden Glenn
President & Chief Executive Officer
For further information, please contact Investor Relations at 647-985-2785 or
Visit our website at
www.minnovacorp.ca
Forward Looking Statements
This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation.
Forward-looking information includes, but is not limited to, information regarding the Company including management's
assessment of future plans and operations, that may involve risks associated with mining exploration and development,
volatility of prices, currency fluctuations, imprecision of resource estimates, environmental and permitting risks, access to
labour and services, competition from other companies and ability to access sufficient capital. As a consequence, actual
results may differ materially from those anticipated in the forward looking statements. A feasibility study has not been
completed and there is no certainty the disclosed targets will be achieved nor that the proposed operations will be
economically viable.
Although
Minnova
has attempted to identify important factors that could cause actual results to differ
materially from those contained in forward-looking information, there may be other factors that cause results not to be as
anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual
results and future events could differ materially from those anticipated in such information. Accordingly, readers should not
place undue reliance on forward-looking information.
Minnova
does not undertake to update any forward-looking information,
except in accordance with applicable securities laws.
Neither 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.