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Molycor Gold Corp. (TSX-V:MOR - News)(PINK SHEETS:MLYFF - News)(Frankfurt:M1V - News) ("Molycor" or the "Company") is pleased to
announce that, further to its news release dated November 17, 2010, the
Company has completed its non-brokered private placement (the "Private
Placement") of 5,250,000 flow-through units (the "FT Units")
at a price of $0.08 per FT Unit, for aggregate proceeds of up to $420,000. The
private placement was over-subscribed.
Each FT Unit consists of one
flow-through common share (a "Flow-Through Share") and one
non-flow-through common share purchase warrant (a "Warrant"). Each
Warrant will entitle the holder to purchase one non-flow-through common share
(a "Non-Flow-Through Share") at an exercise price of $0.13 at any
time and from time to time until 5 p.m. (Vancouver time) on November 30,
2012.
The Flow-Through Shares will entitle the
holders to a 100% CEE deduction, a 15% Federal tax credit for grass roots
exploration and a 20% tax credit for exploration in British Columbia.
The Company paid to Limited Market
Dealer Inc. (the "Finder") a cash commission of $21,000 equal to 6%
of the aggregate proceeds of the Mineralfields
Group, less $3,000. In addition, the Company issued to the Finder, 350,000
non-flow-through finders warrants (the "Finders Warrants") equal to
8% of the number of FT Units subscribed for by the Mineralfields
Group. Each Finder's Fee Warrant will entitle the holder to purchase one
Non-Flow-Through Share at an exercise price of $0.13 until at any time and
from time to time until 5 p.m. (Vancouver time) on November 30, 2012.
A further cash finder's fee totaling
$2,000 was paid to Ronald Kolman which equals 10%
of the aggregate proceeds.
The total of 5,250,000 Flow-Through
Shares, 5,250,000 Warrants and 350,000 Finder Warrants issued pursuant to the
Private Placement are subject to a hold period expiring March 31, 2011.
The proceeds of this Private Placement
will be used to develop the Company's holdings in British Columbia.
"We are very pleased to be renewing
this relationship with MineralFields Group,"
said Larry W. Reaugh, Molycor
Chief Executive Officer. "This is an important milestone in the growth
of Molycor and we look forward to working with MineralFields Group as we develop our holdings in
BC."
About MineralFields,
Pathway and First Canadian Securities®
MineralFields Group (a division of Pathway Asset
Management), based in Toronto, Montreal, 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.
Information about MineralFields Group is available
at www.mineralfields.com.
First Canadian Securities®, a division of Limited Market Dealer Inc., is
active in leading resource financings (both flow-through and hard dollar) on
competitive, effective and service-friendly terms, with investors both
within, and outside of MineralFields Group.
About Molycor
Gold Corp.:
Molycor is a diversified precious, speciality and base metal exploration and development
company focusing on magnesium, molybdenum and gold exploration and
development in North America.
On Behalf of Management
Larry W. Reaugh,
Chief Executive Officer
For all Molycor
Gold Corp. investor relations needs, investors are asked to visit the Molycor Gold Corp. website at www.molycor.com.
This news release may contain certain
"Forward-Looking Statements" within the meaning of Section 21E of
the United States Securities Exchange Act of 1934, as amended. All
statements, other than statements of historical fact, included herein are forward-looking
statements that involve various risks and uncertainties. There can be no
assurance that such statements will prove to be accurate, and actual results
and future events could differ materially from those anticipated in such
statements. Important factors that could cause actual results to differ
materially from the Company's expectations are disclosed in the Company's
documents filed from time to time with the TSX-Venture Exchange, the British
Columbia Securities Commission and the US Securities and Exchange Commission.
The TSX Venture Exchange has not
reviewed and does not accept responsibility for the adequacy or accuracy of
this release.
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