Manitou Gold Announces Closing of Private Placement, Alamos Gold Maintains Interest
February 13 2020 - 6:00AM
Manitou Gold Inc. (TSXV: MTU) (the “
Company” or
“
Manitou”) is pleased to announce that it has
completed a private placement (the “
Offering”)
pursuant to which it has issued (i) 28,888,666 units (“
Hard
Units”) at a price of $0.06 per Hard Unit to raise
aggregate gross proceeds of $1,733,319; and (ii) 11,999,998
“flow-through” common shares (“
FT Shares”) at a
price of $0.075 per FT Share to raise aggregate gross proceeds of
$899,999.85. Each Hard Unit consists of one common share of the
Company and one share purchase warrant (a
“
Warrant”). Each Warrant entitles the holder to
acquire one additional common share of the Company at an exercise
price of $0.09 until the date which is three years from the closing
date of the Offering. Pursuant to the previously announced
investment agreement entered into between Manitou and Alamos Gold
Inc. (“
Alamos”) (TSX: AGI, NYSE: AGI), Alamos
subscribed in the Offering to maintain its 19.9% interest in the
Company.
In connection with the Offering, Manitou has
engaged Laurentian Bank Securities Inc.
(“Laurentian”) to act as its exclusive financial
advisor for the Offering. The Company paid a cash commission and
issued an aggregate of 2,608,026 broker warrants (“Broker
Warrants”) to finders assisting in the Offering including
Laurentian, PowerOne Capital Markets Limited and Canaccord Genuity.
Each Broker Warrant is exercisable to acquire one Unit at an
exercise price of $0.06 for a period of three years following the
closing of the Offering. The Offering and related matters remain
subject to various closing conditions, including the final approval
of the TSX Venture Exchange. All securities issued and issuable in
connection with the Offering are subject to a statutory hold period
expiring on June 13, 2020.
For further information on Manitou Gold
Inc. contact:
Richard Murphy, President and CEOTelephone: 1
(705) 698-1962
Email: info@manitougold.comHead Office: 82
Richmond Street East, Suite 200, Toronto, Ontario M5C 1P1
Forward Looking Statements – Certain information
set forth in this news release may contain forward-looking
statements that involve substantial known and unknown risks and
uncertainties. These forward-looking statements are subject to
numerous risks and uncertainties, certain of which are beyond the
control of Manitou, including, but not limited to the receipt of
applicable regulatory approvals and uses of the proceeds of the
Offering. Readers are cautioned that the assumptions used in the
preparation of such information, although considered reasonable at
the time of preparation, may prove to be imprecise and, as such,
undue reliance should not be placed on forward-looking
statements.
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