VANCOUVER, Sept. 5, 2019 /CNW/ - Mineral Mountain Resources Ltd. ("Mineral Mountain" or the "Company") (TSXV: "MMV") is pleased to announce that it has closed the first tranche of its non-brokered unit ("Unit") private placement (the "Private Placement") announced previously on August 30, 2019 and has issued 14,220,867 units of the Company ("Units") at a price of C$0.15 per Unit to raise gross proceeds of C$2,133,130.05. Each Unit consists of one common share of the Company and one common share purchase warrant (a "Warrant"), with each Warrant entitling the holder to purchase one common share of the Company (a "Warrant Share") for a period of one (1) year from closing at an exercise price of C$0.25 per Warrant Share.
On August 30, 2019, the Company announced a Private Placement of up to 20,000,000 units ("Units") to be sold at a price of C$0.15 per Unit to raise gross proceeds of up to C$3,000,000. The final tranche is expected to close shortly.
A finder's fee of 7% was paid to arm's length third parties in connection with the Private Placement.
The net proceeds raised from the Private Placement are intended to be used to fund a directional drilling program of 4,000 m designed to target high grade gold mineralization intersected historically at about 1,000 meters down plunge of the East Limb Structure which hosts the Standby Mine gold deposit, and, for corporate and general working capital purposes.
The securities issued pursuant to the Private Placement are subject to a hold period expiring on January 6th, 2020 pursuant to applicable Canadian securities laws.
The Private Placement is subject to final TSXV approval.
On Behalf of the Board of Directors
MINERAL MOUNTAIN RESOURCES LTD.
"Nelson W. Baker", President and CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward looking information
This release includes certain statements that may be deemed to be "forward-looking information" under Canadian securities laws. All statements in this release, other than statements of historical facts, that address events or developments that the Company expects to occur, constitute forward looking- information. Forward looking information consists of statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking information are based on reasonable assumptions, such information does not constitute guarantees of future performance and actual results may differ materially from those in forward- looking information. Factors that cause the actual results to differ materially from those in forward-looking information include gold prices, results of exploration and development activities, regulatory changes, defects in title, availability of materials and equipment, timeliness of government approvals, continued availability of capital and financing and general economic, market or business conditions. The Company cautions the foregoing list of important factors is not exhaustive. Investors and others who base themselves on the Company's forward-looking information should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. The Company believes that the expectations reflected in the forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be correct. Please see the public filings of the Company at www.sedar.com for further information.