OTTAWA, ONTARIO--(Marketwired - Oct. 10, 2013) - Melkior Resources Inc. ("Melkior") (News - Market indicators) is pleased to announce a non-brokered private placement of up to 12,000,000 combined unit A and Unit B for maximum gross proceeds ("Gross Proceeds") of $600,000 CAD, subject to the Corporation's right to increase the Offering at its sole discretion.
Each unit A is comprised of one flow through common share and of one non flow through common share purchase warrant. Each whole warrant entitles the holder to purchase a common share at a price of $0.10 CAD per share for a period of 24 months following the Closing.
Each unit B is comprised of one common share and of one common share purchase warrant. Each whole warrant entitles the holder to purchase a common share at a price of $0.05 CAD per share for a period of 24 months following the Closing.
In connection with the Offering, Melkior may pay a finders' fee of up to 7% of Gross Proceeds payable in cash and 10% in warrants. Each whole warrant entitles the holder to purchase a common share at a price of $0.05 CAD per share for a period of 24 months following the Closing.
In accordance with securities legislation currently in effect in Canada, the Shares, the Warrants and the Warrant Shares will be subject to a "hold period" of four months plus one day from the date of closing of the private placement
Melkior is also pleased to announce that it has completed the closing of its previously announced private placement for aggregate proceeds of $170,000 consisting of the issuance of 3,400,000 units at a price of $0.05 per unit. Each unit is comprised of one common share and one common share purchase warrant. Each full warrant entitles its holder to purchase one additional common share at a price of $0.05 for a period of 24 months following the closing. The securities issued under the private placement are subject to a four (4) month hold period ending February 8, 2014.
In conjunction with the private placement, insiders of Melkior have subscribed for aggregate proceeds of $105,000.
Melkior paid cash commissions totalling $700 and issued 120,000 broker warrants in relation to this private placement. The broker warrants have the same terms as the unit warrants.
The proceeds of both placements will be for definition drilling for a near surface 43-101 calculation and deep exploration drilling on Melkior's 100% owned Carscallen gold property in Timmins Ontario.
In other news
Under the new Ontario Mining Act, mineral exploration companies are required to undertake consultation with the First Nation that have traditional rights and treaty rights on the lands being explored. Melkior signed the MOU referred to in the news release dated October 4, 2013 indicating a recognition and respect for these rights as part of the consultation process. The 200,000 share payment was agreed to in recognition of the importance of the assistance provided in this process.
About Melkior:
Melkior is a junior exploration company with active exploration projects in West Timmins and holds several other exploration properties of which the most important is the 100% owned Launay gold property in West Quebec. Melkior also holds two important claim groups in the Beardmore Long-Lac gold camps.
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.
