April 01, 2010
MetalCorp Limited Announces Completion of $1,000,000 Non-Brokered Private Placement of Flow-Through Units with Mineralfields
Toronto, Ontario, Canada (April 1, 2010) - MetalCorp Limited (TSX-V: MTC) is pleased to announce that it successfully completed the first tranche of its previously announced $1,400,000 private placement (the "Private Placement") (see MetalCorp's news release dated March 29, 2010). An aggregate of 5,000,000 units ("Units") were sold today to funds of the MineralFields Group at $0.20 per Unit for gross proceeds of $1,000,000.00. Each Unit is comprised of one flow-through common share and one-half of a transferable flow-through common share purchase warrant. Each whole warrant (a "Unit 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 325,000 finder's warrants, being 6.5% of the aggregate number of Units purchased. Each finder's warrant entitles the holder to purchase for a period of two years one finder's unit comprised of one non-flow through common share and one-half of one non-flow-through warrant (on the same terms as the Unit Warrant) at $0.20 per each such finder's unit.
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 Pickle Lake and Red lake (Black Bear) gold properties, and projects at its Hemlo East gold property.
All the securities issued pursuant to this first tranche are subject to a four (4) month hold period.
"We are very pleased to continue our 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 Private Placement, MetalCorp has 61,349,471 common shares outstanding and approximately $2,000,000 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 ®
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.
Except for statements of historical fact contained herein, the information in this press release may constitute "forward-looking information" within the meaning of Canadian securities law. Other than statements of historical fact, all statements are "Forward-Looking Statements", including the size and pricing of the Offering, that involve various known and unknown risk and uncertainties and other factors, such as market conditions. There can be no assurance that such statements will prove accurate. Results and future events could differ materially from those anticipated in such statements. Readers of this press release are cautioned not to place undue reliance on these "Forward-Looking Statements". Except as otherwise required by applicable securities statutes or regulation, MetalCorp expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.
© 2018 MetalCorp Inc.