THUNDER BAY, ONTARIO--(Marketwired - April 26, 2017) - MEXICAN GOLD CORP. ("Mexican Gold" or the "Company") (TSX VENTURE:MEX) is pleased to announce that it has arranged a non-brokered private placement (the "Private Placement") of up to 5,000,000 units of the Company (the "Units") at a price of $0.30 per Unit for gross proceeds of up to $1,500,000. Each Unit will consist of one common share of the Company (a "Common Share") and one transferable common share purchase warrant (a "Warrant"). Each Warrant will entitle the holder to purchase one Common Share at a price of $0.45 per Common Share for a period of twenty-four months from the closing date of the Private Placement.
The net proceeds from the Private Placement will be used to continue exploration on the Company's Las Minas Project located in the State of Veracruz, Mexico, and for property payments, and general working capital purposes.
In connection with the Private Placement, certain arm's length parties may receive a cash finder's fee payment equal to 7% of the gross proceeds of the Units that are sold to subscribers introduced by such parties. The finder's fee payment is subject to the approval of the TSX Venture Exchange (the "Exchange").
Closing of the Private Placement is anticipated to occur on or about May 5, 2017, and is subject to receipt of all required regulatory approvals including the approval of the Exchange.
The securities to be issued under the Private Placement will be offered by way of private placement in the provinces of Ontario and British Columbia and such other provinces of Canada as may be determined by the Company, in each case, pursuant to applicable exemptions from the prospectus requirements under applicable Canadian securities laws and in the United States on a private placement basis pursuant to exemptions from the registration requirements of the United States Securities Act of 1933, as amended. The securities issued under the Private Placement will be subject to a four month hold period under applicable Canadian securities laws which will expire four months and one day from the date of closing of the Private Placement.
The securities being offered have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States absent U.S. registration or an applicable exemption from the U.S. registration requirements. This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities.
Further to the news release dated April 21, 2017, the Company also announces that effective at the opening of trading on April 26, 2017, the common shares of the Company commenced trading under stock symbol MEX on the Exchange, and the common shares of Source Exploration Corp. were delisted.
About Mexican Gold Corp.
Mexican Gold is a Canadian based mineral exploration company committed to building long-term value through the discovery, acquisition and advancement of mineral properties. Mexican Gold holds an option on the Las Minas gold, silver and copper exploration project located within the Las Minas mining district in the State of Veracruz, Mexico. The district hosts one of the largest underexplored skarn systems known in Mexico and has a strong production history that dates back to the Aztec era.
