December 16, 2009
MetalCorp Limited Announces Completion of First Tranche of $1,500,000 Non-Brokered Private Placement of Flow-Through Units
Toronto, Ontario, Canada (December 16, 2009) - MetalCorp Limited (TSX-V: MTC) is pleased to announce that it successfully completed the first tranche of its previously announced $1,500,000 private placement (the "Private Placement") (see MetalCorp's news release dated December 10, 2009). An aggregate of 3,783,782 units ("Units") were sold today to funds of the MineralFields Group at $0.185 per Unit for gross proceeds of $700,000.00 (the "First Tranche"). Each Unit is comprised of one flow-through common share and one-half of a flow-through common share purchase warrant. Each whole warrant (a "Warrant") entitles the holder to purchase one non-flow-through common share at any time for a period of two years, at a price of $0.35 in the first year and $0.45 in the second year.
A finder received as compensation 6.5% cash commission and 245,946 finder's warrants, being 6.5% of the aggregate number of Units purchased under the First Tranche. Each finder's warrant entitles the holder to purchase for a period of two years one non-flow-through common share and one-half of a non-flow-through Warrant for a price of $0.185.
The gross proceeds to MetalCorp from the Private Placement will be used to fund exploration expenses which qualify as "Canadian Exploration Expenses" (within the meaning of the Income Tax Act (Canada)) in connection with MetalCorp's projects in Ontario, including its BL14 copper/zinc project at its Big Lake property and at its projects at its Hemlo East and Pickle Lake gold properties.
All the securities issued pursuant to this First Tranche are subject to a four (4) month hold period.
"We are very pleased to be entering into this relationship with MineralFields Group", said Naomi Nemeth, President and CEO of MetalCorp. "This is an important milestone in the growth of MetalCorp Limited and we look forward to working with MineralFields Group as we develop our holdings in the Hemlo East and Pickle Lake regions."
About MetalCorp Limited
MetalCorp Limited is a mineral exploration company based in Thunder Bay, Ontario with gold and base metal projects in the Canadian Shield of Northern Ontario, Canada, one of the most prolific mineral districts in the world. The projects, with a total area of more than 85,000 acres, include the Hemlo East, Dorset, Pickle Lake, Black Bear and Keezhik Lake gold properties, the Big Lake copper-zinc-silver-gold property, and the North Rock copper-nickel-platinum property. Following the closing of this First Tranche, MetalCorp has 52,890,418 common shares outstanding and approximately $1.1 million in cash and no long-term debt. To find out more about MetalCorp visit our website at www.metalcorp.ca.
About MineralFields, Pathway and First Canadian Securities (r)
MineralFields Group (a division of Pathway Asset Management), based in Toronto, Vancouver and Calgary, is a mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds (including the Pathway Multi Series Funds Inc. corporate-class mutual fund series). Information about MineralFields Group is available atwww.mineralfields.com. First Canadian Securities (r) is active in leading resource financings (both flow-through and hard dollar PIPE financings) on competitive, effective and service-friendly terms, and offers investment banking, mergers and acquisitions, and mining industry consulting, services to resource companies. MineralFields and Pathway have financed several hundred mining and oil and gas exploration companies to date through First Canadian Securities (r).
This press release shall not constitute an offer to sell or solicitation of an offer to buy the securities in any jurisdiction. The common shares and the Warrants comprising the Units or issuable upon exercise of the Warrants and finder's warrants will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent an applicable exemption from the registration requirements.
This Press Release contains forward-looking statements, including the size and pricing of the Private Placement that may involve a number of risks and uncertainties, including market conditions. Actual events or results could differ materially from MetalCorp's forward-looking statements and expectations herein.
FOR FURTHER INFORMATION PLEASE CONTACT:
President and CEO
+1 416) 363-9428
Neither IIROC nor the TSX Venture Exchange accepts responsibility for the adequacy or accuracy of this release. This press release is not for distribution to United States newswire services nor for dissemination in the United States.
© 2018 MetalCorp Inc.