MISTANGO
ANNOUNCES PRIVATE PLACEMENT FINANCING
Mistango River Resources Inc. (CNSX: MIS) (?Mistango?)
is pleased to announce a proposed non-brokered private placement of up to
6,200,000 units of securities issued on a ?flow-through? basis
at a price of $0.25 per unit (each, a ?Unit?) for gross proceeds of up
to $1,550,000 (the ?Offering?). Each Unit comprises one Class A voting
common share of the Corporation (?Common
Share?) and one-half of one Common Share purchase warrant (each whole
Common Share purchase warrant, a ?Warrant?), with each Warrant entitling
the holder thereof to acquire one Common Share at a price of $0.35 per share at
any time within 2 years after the issuance of the Warrant.
The gross
proceeds from the sale of the Units will be used to incur Canadian Exploration
Expenses for the purposes of the Income Tax Act (Canada). Such Canadian
Exploration Expenses will be renounced with an effective date of no later than
December 31, 2011
In
connection with the Offering, Mistango has entered
into a finder?s agreement
with Primary Capital Inc. (the ?Finder?) pursuant to which the Finder
may introduce to Mistango persons who wish to
participate in the Offering. Mistango has
agreed to pay to the Finder a cash finder?s fee equal
to, in the aggregate, 6.5% of the gross proceeds of the Offering raised from
subscribers introduced to Mistango by said Finder. In
addition to the cash fee, the Finder will be entitled to receive, on closing of
the Offering, non-transferable compensation options (each a ?Compensation
Option?) equal to, in the aggregate, 6.5% of the number of Units
sold. Each Compensation Option will entitle the holder thereof to acquire
one unit of securities of Mistango (each, a ?Finder?s Unit?) at a price of $0.25 per Finder?s Unit for a period of 2 years after the issuance of
the Compensation Option. Each Finder?s Unit
will comprise one Common Share and one-half of one Common Share purchase
warrant, with each such warrant entitling the holder thereof to acquire one
Common Share at a price of $0.35 per share for a period of 2 years after the
date of issuance of the Compensation Options.
It is
anticipated that the Offering will close on or about October 13, 2011.
The Offering is subject to the receipt of all regulatory or other approvals
that may be necessary in order to complete the transactions contemplated
herein. All securities to be issued pursuant to this Offering will be subject
to a statutory four (4) month hold period.
Mistango
is a Canadian-based junior mining and exploration company focused on existing
projects in Ontario and Quebec. For additional information about Mistango and its mining properties, please visit Mistango?s regulatory filings at
www.sedar.com or at www.cnsx.ca.