VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 23, 2014) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS.
Magellan Minerals Ltd. (TSX VENTURE:MNM) ("Magellan") is pleased to announce that it has closed the first tranche of its private placement financing of 30,000,000 units (the "Units") of Magellan at a price of $0.10 per Unit, for gross proceeds of $3,000,000. Each Unit consists of one common share and one-half of a share purchase warrant. Each whole warrant is exercisable into one additional common share at an exercise price of $0.18 per common share for a period of 18 months from the closing date.
The first tranche closing involved the issuance of 5,000,000 units for gross proceeds of $500,000. A second closing respecting the issuance of 15,000,000 units for gross proceeds of $1,500,000 will take place on September 28, 2014. The final closing respecting the issuance of 10,000,000 units for gross proceeds of $1,000,000 will take place on October 28, 2014.
The Units were subscribed for by a private individual. A finder's fee equivalent to 6% of the gross proceeds received from this individual is payable to a third party.
The proceeds from the private placement will be used to finish the Coringa feasibility study that has been suspended since July 2013 and for general working capital purposes.
The shares underlying the Units and any shares acquired on exercise of the warrants acquired in connection with the first tranche closing will be subject to resale restrictions until January 20, 2015.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States absent registration or an exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Magellan Minerals Ltd. (TSX VENTURE:MNM) is a TSX Venture Exchange listed exploration and development company with two advanced gold properties in the Tapajos Province of northern Brazil. The Coringa project contains Measured and Indicated resources of 561,000oz of gold (3.2Mt @ 5.5g/t gold) and Inferred resources of 534,000oz of gold (5.5Mt @ 3.0g/t gold). The Cuiu Cuiu project contains 100,000oz of gold in the Indicated category (3.4Mt @ 1.0g/t gold) and 1,200,000oz of gold in the Inferred category (31Mt @ 1.2g/t gold).
Neither the 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.
News release #2014-6