Toronto, Ontario (FSCwire) - Mustang Minerals Corp. (TSX-V: MUM ) (" Mustang “ or the "Company") announced today that it intends to undertake a non-brokered private placement, on a post-Consolidation basis (as defined below), of up to 8,000,000 units in the capital of the Company (each, a "Unit") at a price of $0.125 per Unit for gross proceeds of up to $1,000,000 (the "Financing").
Each Unit will consist of one post-Consolidation common share in the capital of the Company and one non- transferable common share purchase warrant (each, a "Warrant"). Each Warrant will entitle the holder to acquire one post-Consolidation common share at a price of $0.15 per share for a period of three years from the closing date.
The proceeds of the Financing will be used by the Company for general corporate and working capital purposes. All securities issued in connection with the Financing will be subject to a four-month hold period under applicable Canadian securities laws. A finders fee of 8% cash may be paid to eligible parties.
Closing of the Financing is subject to the approval of the TSX Venture Exchange (the "TSXV").
Proposed Share Consolidation
In addition, and in conjunction with the proposed Financing, the Company intends to amend its share structure by consolidating its issued and outstanding common shares on the basis of one (new) post consolidation share for each ten (old) pre-consolidation shares (the "Consolidation").
The board of directors of the Company believes that the Consolidation is necessary due to market and regulatory conditions that have made it challenging to raise capital under the current share structure of the Company. Upon completion of the financing the Company will have a significantly improved working capital position to advance its mineral properties and other corporate initiatives. There will be no name change in conjunction with the Consolidation and the Consolidation is subject to the approval of the TSXV.
About Mustang Minerals
Mustang owns the mineral rights to the Makwa Nickel Property and the Mayville Property both located in the Bird River Greenstone Belt in southeast Manitoba. The Company completed a PEA on the Makwa-Mayville Project in 2014. The Company also controls mineral rights at the East Bull Lake Property west of Sudbury prospective for PGM and the Bannockburn Nickel Property near Matachewan.
