VANCOUVER, British Columbia, July 07, 2017 (GLOBE NEWSWIRE) -- Macarthur Minerals Limited (TSX-V: MMS ) (the “Company” or “Macarthur Minerals”) is pleased to announce that it will undertake a non-brokered private placement (the “Offering”) of up to 50,000,000 units (each, a “Unit”) at a price of CAD$0.05 per Unit for a total consideration of $2.5 million.
As part of the Private Placement, existing Macarthur Australia Limited (“Macarthur Australia”) shareholders have made pre-commitments for 30,000,000 Units for a total of $1.5 million for buy back of their shares in Macarthur Australia. Upon completion of the Offering Macarthur Minerals will hold 100% interest in Macarthur Australia, which holds the Iron Ore Projects and Lithium Projects in Western Australia.
Each Unit shall be comprised of one common share in the capital of the Company (each, a "Common Share") and one whole warrant to acquire a Common Share at an exercise price of CAD$0.05 per Common Share exercisable until February 16, 2018.
Macarthur Australia currently has 138,366,997 shares on issue of which Macarthur Minerals holds 125,000,001 shares representing 90.3%. The remaining 13,366,996 shares are held by seed shareholders which represents 9.7% of Macarthur Australia (“MAL Seed Investors”).
The MAL Seed Investors have indicated that they would like to subscribe in the Offering for up to 30,000,000 Units, in consideration for the shares they hold in Macarthur Australia to Macarthur Minerals. Upon completion of the Offering, Macarthur Minerals will hold 100% interest in Macarthur Australia.
The closing of the Offering will occur as soon as possible after, and subject to, receipt of all necessary regulatory approvals including that of the TSX Venture Exchange. The net proceeds from the Offering will be used for working capital purposes. No part of the proceeds will be used to pay management fees or to pay related parties. The securities issued pursuant to the Offering will be subject to a statutory 4 month plus one day hold period from the date of issuance.
In connection with the Offering, the Company may pay finder’s fees up to 8% of the gross proceeds of the Offering.
ABOUT MACARTHUR MINERALS LIMITED (TSX-V: MMS )
Macarthur Minerals Limited is an exploration and development company that is focused on developing its lithium exploration interests in Australia and Nevada. Macarthur Minerals is the majority shareholder of Macarthur Australia Limited, which owns significant iron ore and lithium projects in Western Australia.
On behalf of the Board of Directors,
MACARTHUR MINERALS LIMITED
“ Cameron McCall ” Cameron McCall, Chairman
| Company Contact: David Taplin, President, CEO and Director dtaplin@macarthurminerals.com Tel: +61 407470044 www.macarthurminerals.com |
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Caution Regarding Forward Looking Statements
Certain of the statements made and information contained in this press release may constitute forward-looking information and forward-looking statements (collectively, “forward-looking statements”) within the meaning of applicable securities laws. The forward-looking statements in this press release reflect the current expectations, assumptions or beliefs of the Company based upon information currently available to the Company. With respect to forward-looking statements contained in this press release, assumptions have been made regarding, among other things, the timely receipt of required approvals, the reliability of information, including historical mineral resource or mineral reserve estimates, prepared and/or published by third parties that are referenced in this press release or was otherwise relied upon by the Company in preparing this press release. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and no assurance can be given that these expectations will prove to be correct as actual results or developments may differ materially from those projected in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include fluctuations in exchange rates and certain commodity prices, uncertainties related to mineral title in the project, unforeseen technology changes that results in a reduction in iron ore demand or substitution by other metals or materials, the discovery of new large low cost deposits of iron ore, uncertainty in successfully returning the project into full operation, and the general level of global economic activity. Readers are cautioned not to place undue reliance on forward-looking statements due to the inherent uncertainty thereof. Such statements relate to future events and expectations and, as such, involve known and unknown risks and uncertainties. The forward-looking statements contained in this press release are made as of the date of this press release and except as may otherwise be required pursuant to applicable laws, the Company does not assume any obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.
