Muzhu Mining Closes First Tranche of Private Placement FOR $273,000.
MUZHU MINING CLOSES FIRST TRANCHE OF PRIVATE PLACEMENT FOR
$273,000.
June 29, 2022 - Vancouver, BC; Muzhu Mining Ltd. (CSE: MUZU) (“Muzhu” or the
“Company”) is pleased to announce that the Company has closed the first tranche of
its private placement that was first announced on May 5, 2022 (the “ Private
Placement”). The closing of the first tranche was for 2,276,667 units at a price of $0.12
per unit (the “ Units”) for gross proceeds of $273,200.04. Each Unit consists of one
common share in the capital of the company and one-half of one common share
purchase warrant (each whole common share purchase warrant, a “ Warrant”). Each
Warrant entitles the holder thereof to acquire one common share of the Company at a
price of $0.20 until June 29, 2023.
Donald Baxter, Muzhu Mining’s CEO commented, “it is good to see the participation and
interest in the financing and proceeds from the first tranche will go towards marketing
through Market One Media Group, work to be performed on the XWG Silver project in
China led by Mr. Anthony Tam, Vice President of China Operations, and towards
working capital.”
The participation by Donald Baxter in the Private Placement constitutes a “related party
transaction” pursuant to Multilateral Instrument 61-101 Protection of Minority Security
Holders in Special Transactions (“MI 61-101 ”). The Company intends to rely on the
exemptions from the formal valuation and minority shareholder approval requirements
of MI 61-101 contained in Section 5.5(b) and Section 5.7(1)(b) of MI 61-101,
respectively, on the basis that (i) no securities of the Company are listed or quoted on
any of the markets specified in Section 5.5(b) of MI 61-101, and (ii) the fair market value
of the securities issued to Mr. Baxter pursuant to the Private Placement does not
exceed $2,500,000, along with the other applicable circumstances contained in section
5.7(1)(b) of MI 61-101.
ON BEHALF OF THE BOARD OF DIRECTORS
Donald Baxter, P. ENG
CEO
Muzhu Mining Ltd.
Phone: 1-226-455-5644
Email: [email protected]
Muzhu Mining Ltd. is a Canadian publicly traded exploration company with a portfolio of
prospective projects at various stages of development. Muzhu currently holds a 100%
interest in the Sleeping Giant South Project, located in the Abitibi Greenstone Belt,
approximately 75km South of Matagami, Quebec. As well, Muzhu has executed an
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option agreement to acquire up to 80% of the Silver, Zinc, Lead XWG Property in the
Henan Province of China.
Cautionary Notes
This news release is not to be distributed in the United States nor does it constitute an
offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the
securities in any jurisdiction in which such offer, solicitation or sale would be unlawful,
including any of the securities in the United States of America. The securities have not
been and will not be registered under the United States Securities Act of 1933, as
amended (the “1933 Act”) or any state securities laws and may not be offered or sold
within the United States or to, or for account or benefit of, U.S. Persons (as defined in
Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable
state securities laws, or an exemption from such registration requirements is available.
This release contains “forward-looking statements” within the meaning of applicable
Canadian securities legislation. Forward-looking statements include, but are not limited
to, statements regarding the timing and amount of estimated future exploration and the
success of such exploration activities and the anticipated use of funds by the Company
that were received from the Private Placement.
Generally, forward-looking statements can be identified by the use of forward-looking
terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”,
“schedule”, “estimates”, “forecasts”, “intends”, “continue”, “anticipates” or “does not
anticipate”, or “believes”, or variations of such words and phrases or statements that
certain actions, events or results “may”, “could”, “would”, “will”, “might” or “will be taken”,
“occur” or “be achieved”. Forward-looking statements are made based upon certain
assumptions and other important facts that, if untrue, could cause the actual results,
performance or achievements of the Company to be materially different from future
results, performances or achievements expressed or implied by such statements. Such
statements and information are based on numerous assumptions regarding present and
future business strategies and the environment in which the Company will operate in the
future.
Certain important factors that could cause actual results, performances or achievements
to differ materially from those in the forward-looking statements include, amongst
others, currency fluctuations, the global economic climate, dilution, share price volatility,
competition, labour shortages, and unanticipated expenses of the Company. Forward-
looking statements are subject to known and unknown risks, uncertainties and other
important factors that may cause the actual results, level of activity, performance or
achievements of the Company to be materially different from those expressed or implied
by such forward-looking statements, including but not limited to: the impact the COVID
19 pandemic may have on the Company’s activities and the economy in general; the
impact of the recovery post COVID 19 pandemic and its impact on precious metals;
receipt of necessary approvals; general business, economic, competitive, political and
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social uncertainties; future metal prices; accidents, labour disputes and shortages;
environmental risks; and other risks of the mining industry.
Although the Company has attempted to identify important factors that could cause
actual results to differ materially from those contained in forward-looking statements,
there may be other factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will prove to be accurate, as
actual results and future events could differ materially from those anticipated in such
statements. Accordingly, readers should not place undue reliance on forward-looking
statements. The Company does not undertake to update any forward-looking
statements, except in accordance with applicable securities laws.
Neither the Canadian Securities Exchange (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 release.