Mawson Resources Limited (TSX: MAW) ("Mawson") announces the closing of its previously announced non-brokered private placement financing of 15,000,000 units (the "Units") at $0.40 per Unit for gross proceeds of $6,000,000 (the "Private Placement"). Each Unit consists of one common share of Mawson and one-half of one common share purchase warrant. Each whole common share purchase warrant is exercisable to acquire one additional common share of Mawson at $0.60 for a period of two years expiring on December 2, 2018.
Mr Michael Hudson, CEO, states, "We are pleased to close the Private Placement, and wish to thank the Sentient Group and existing funds for their continued support. We also welcome our new shareholders. With drill permits recently received, we now can rigorously and systematically drill test the Rompas-Rajapalot gold discovery for the first time. Post financing, Mawson will hold more than C$9 million cash which will enable the Company to execute a 10,000 to 13,000 metre drill program. Drill rigs are set to start turning over the coming weeks."
Under the Private Placement, Sentient Global Resources Fund IV, L.P. (the "Sentient Fund"), part of a group of funds which is an insider and control person of Mawson (the "Sentient Group"), has subscribed for 5,378,066 Units for gross proceeds of $2,151,227. Following closing of the Private Placement, the Sentient Group holds approximately 37.45% of the issued and outstanding common shares of Mawson on a partially diluted basis (taking into account the full exercise of warrants issued to the Sentient Fund under the Private Placement only).
The securities issued under the Private Placement are subject to a four-month hold period expiring on April 3, 2017.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
About Mawson Resources Limited
Mawson Resources Limited is an exploration and development company. Mawson has distinguished itself as a leading Nordic Arctic exploration company with a focus on the flagship Rompas and Rajapalot gold projects in Finland.
Source: Mawson Resources
