April 26, 2010
MetalCorp Limited Announces Completion of Second Tranche of $1,400,000 Non-Brokered Private Placement of Flow-Through Units
Toronto, Ontario, Canada (April 26, 2009) - MetalCorp Limited (TSX-V: MTC) is pleased to announce that it successfully completed the second tranche of its previously announced $1,400,000 private placement (the "Private Placement") (see MetalCorp's news releases dated March 29, 2010 and April 1, 2010). An aggregate of 1,350,000 units ("Units") were sold today to subscribers at $0.20 per Unit for gross proceeds of $270,000 (the "Second 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.
One finder received as compensation $600 cash commission and 3,000 finder's warrants, and one finder received as compensation $4,500 cash commission and 22,500 finder's warrants, each being 3.0% of the aggregate subscription amount and 3% of the aggregate number of Units, respectively, sourced by such finders. 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 $0.20.
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 Second Tranche are subject to a four (4) month hold period.
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 Second Tranche, MetalCorp has 62,699,471 common shares outstanding and approximately $2.4 million in cash and no long-term debt. To find out more about MetalCorp visit our website at www.metalcorp.ca.
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 use of the proceeds 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.
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