Deal funds development of nickel mineral projects in Palawan, the Philippines
By Devika Patel
Knoxville, Tenn., March 22 - MBMI Resources Inc. said it has closed the first C$1.9 million tranche of a non-brokered private placement of units. The offering priced for C$3.8 million on March 1.
The company is selling 21,117,884 units at C$0.18 apiece. It sold 10,558,942 units in this closing.
Each unit consists of one common share and one warrant, with each warrant exercisable at C$0.25 for one year. The strike price is a 42.86% premium to the Feb. 28 closing share price of C$0.175.
As a result of this tranche, Gwynneth Gold Ltd. has become an insider and now holds about 12.7% of the company's outstanding shares. MBMI intends to close a second tranche; one investor has agreed to buy 10,558,942 units for another C$1.9 million in that tranche.
Proceeds will be used for development of MBMI's nickel mineral properties in Palawan, the Philippines, and for general corporate purposes.
MBMI Resources is a Vancouver, B.C.-based mining company focused on the exploration and development of nickel mineral properties.
| Issuer: | MBMI Resources Inc.
|
| Issue: | Units of one common share and one warrant
|
| Amount: | C$3,801,219
|
| Units: | 21,117,884 (10,558,942 in first tranche)
|
| Price: | C$0.18
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | One year
|
| Warrant strike price: | C$0.25
|
| Agent: | Non-brokered
|
| Investor: | Gwynneth Gold Ltd.
|
| Pricing date: | March 1
|
| Settlement date: | March 22 (for C$1,900,609)
|
| Stock symbol: | TSX Venture: MBR
|
| Stock price: | C$0.18 at close March 1
|
| Market capitalization: | C$17.92 million
|
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