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Mustang
Minerals Corp. (TSX VENTURE:MUM)(FRANKFURT:NJF) ("Mustang" or the
"Company") is pleased to announce it has completed the final
closing of a non-brokered private placement financing (the
"Offering") raising a total of $4,631,467.
The Company issued 8,543,552 common shares at a price of $0.10 per share to
Western Areas NL (TSX:ASX) ("WSA") for
gross proceeds of $854,355. No finders
fees or commissions were paid in connection with the WSA placement. In
addition to the current tranche of common shares the Company issued
31,475,931 flow-through shares for gross proceeds of $3,777,112. The Company
has paid eligible finders fees of $297,369, and
issued 2,478,074 finders warrants pursuant to the offering. All securities
issued under the Offering are subject to a hold period of four months and one
day from date of issuance.
WSA is Australia's 2nd largest nickel sulphide
producer with its two operating mines being the highest grade and lowest cash
cost in the country. Outside Australia, Western Areas has active exploration
and development interests in Finland and Canada. After issuance of the
current tranche of financing, Western Areas will maintain its 19.9% ownership
of the outstanding common shares of Mustang.
With the fund raising now complete, Mustang has re-commenced an exploration
drilling at its Mayville Property which is located in southeast Manitoba.
Mayville has a NI 43-101 Cu-Ni open pit resource at the M2 Zone and hosts the
PGM Zone where in 2011 it announced significant intercepts of platinum-
palladium mineralization. Over the last 8 months Mustang has completed
extensive geological mapping, geochemical and geophysical surveys at Mayville
and based on the results has recently commenced a 30 hole - 7500m drill
program to test the down-dip and on-strike extents of the PGM Zone, Hititrite Cu-Ni Zone, Copper Contact and several deep
targets on the M2 Cu-Ni Zone.
Robin Dunbar President of Mustang commented "through the excellent work
of our geological team we have significantly increased our knowledge and
database of the Mayville Property which covers much of the Mayville Intrusive
Complex. We anticipate a productive exploration program at Mayville in
2012."
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