Mistango River Resources Amends Terms of Private Placement to Accommodate Demand
Mistango River Resources Amends Terms of
Private Placement to Accommodate Demand
/NOT FOR DISSEMINATION, DISTRIBUTION, RELEASE, OR PUBLICATION, DIRECTLY OR
INDIRECTLY, IN OR INTO
THE UNITED STATES
OR FOR DISTRIBUTION TO U.S. NEWSWIRE
SERVICES/
TORONTO
,
Sept. 11, 2020
/CNW/ - Mistango River Resources Inc. ("
Mistango
" or the
"
Company
") (CSE: MIS) is pleased to announce that due to demand for common equity in the
Company it has amended the terms of the private placement previously announced on
August 31,
2020
to include a hard dollar tranche. Echelon Wealth Partners Inc. ("
Echelon
") has agreed to sell,
on a "best efforts" private placement basis, up to approximately
C$3,000,000
of units (the "
Units
")
and flow-through units (the "
FT Units
", together with Units, the "
Offered Securities
") of the
Company (the "
Offering
") at a price of
C$0.22
per Unit (the "
Unit Issue Price
") and
C$0.28
per FT
Unit (the "
FT Issue Price
"), respectively.
Each Unit will consist of one common share of the Company (a "
Unit Share
") and one-half of one
common share purchase warrant (each whole warrant a "
Warrant
"), with each Warrant entitling the
holder thereof to acquire one common share of the Company at a price
C$0.30
for a period of 2
years following the closing of the Offering.
Each FT Unit will consist of one common share of the Company (a "
FT
Unit Share
") and one-half of
one common share purchase warrant (each whole warrant a "
FT
Warrant
"), with each FT Warrant
entitling the holder thereof to acquire one common share of the Company at a price
C$0.35
for a
period of 2 years following the closing of the Offering.
The Company has also granted Echelon an option to purchase up to an additional 15% of Units and
FT Units, in such proportion as the underwriters may determine, exercisable at any time until 48
hours prior to Closing.
The gross proceeds received by the Company from the sale of the FT Units will be used to incur
Canadian Exploration Expenses ("
CEE
") that are "flow-through mining expenditures" (as such terms
are defined in the Income Tax Act (
Canada
)) on the Company's properties in
Ontario
, which will be
renounced to the subscribers with an effective date no later than
December 31, 2020
, in the
aggregate amount of not less than the total amount of the gross proceeds raised from the issue of
FT Units.
Echelon will receive a cash commission (the "
Commission
") equal to 7.0% of the gross proceeds
from the Offering, excluding gross proceeds from the issuance of FT Units on a president's list to be
agreed upon by the Company and Echelon (the "
President's List
") for which a commission of 3.5%
of such gross proceeds will be paid by the Company to Echelon. The Company shall issue to
Echelon compensation options (the "
Compensation Options
") equal to 7.0% of the number of
Offered Securities sold under the Offering excluding the President's List and 3.5% of the number of
Offered Securities sold under the Offering to subscribers on the President's List. Each
Compensation Option shall entitle the holder thereof to subscribe for one unit (the "
Unit
") at
C$0.24
for a period of 24 months from the Closing Date. Each Unit will comprise of a common share and
one-half of one purchase Warrant.
The Offering is scheduled to close on or about
September 29, 2020
and is subject to certain
conditions including, but not limited to, the receipt of all necessary regulatory and other approvals
including the approval of the Canadian Securities Exchange and the securities regulatory authorities.
The securities to be offered pursuant to the Offering have not been, and will not be, registered under
the U.S. Securities Act of 1933, as amended (the "
U.S. Securities Act
") or any U.S. state securities
laws, and may not be offered or sold in
the United States
or to, or for the account or benefit of,
United States
persons absent registration or any applicable exemption from the registration
requirements of the U.S. Securities Act and applicable U.S. state securities laws. This news release
shall not constitute an offer to sell or the solicitation of an offer to buy securities in
the United States
,
nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful.
About Mistango River Resources Inc.
Mistango is a Canadian -based exploration and development company focused on its
Kirkland West
and Omega projects in the
Kirkland Lake
District of
Ontario's
Abitibi Greenstone Belt.
The Company is listed on the Canadian Securities Exchange under the symbol MIS.
SOURCE
Mistango River Resources Inc.
View original content:
http://www.newswire.ca/en/releases/archive/September2020/11/c2351.html
%SEDAR: 00002665E
For further information:
To Speak to the Company directly, please contact: Stephen Stewart,
Director, Phone: 416.644.1567, Email: [email protected], www.Mistango.com
CO: Mistango River Resources Inc.
CNW 07:01e 11-SEP-20