VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 4, 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 negotiated a 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 funds are to be paid and the Units are to be issued in three tranches of $500,000, $1,500,000 and $1,000,000 over a period of two months commencing on 28th August 2014. The first payment of $500,000 has already been received.
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.
Closing of the private placement is subject to approval of the TSX Venture Exchange. All securities issued pursuant to the private placement will be subject to a four month hold period under Canadian securities laws.
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.