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Enter Symbol
or Name
USA
CA



Minnova Corp
Symbol MCI
Shares Issued 22,321,358
Close 2016-11-04 C$ 0.78
Market Cap C$ 17,410,659
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Minnova closes $3.33-million first tranche of placement

2016-11-04 14:43 ET - News Release

Mr. Gorden Glenn reports

MINNOVA CORP. ANNOUNCES CLOSING OF FIRST TRANCHE OF PREVIOUSLY ANNOUNCED PRIVATE PLACEMENT FOR GROSS PROCEEDS OF $3,334,750

Minnova Corp., further to its press releases from Sept. 21, 2016, and Oct. 25, 2016, has closed the first tranche of its previously announced brokered and non-brokered private placement raising aggregate gross proceeds of $3,334,750.

Pursuant to the brokered offering co-led by Mackie Research Capital Corp. and Industrial Alliance Securities Inc., the company issued 71,000 flow-through units at a price of 85 cents per FT unit for gross proceeds of $60,350, and 966,200 units at a price of 65 cents per unit for gross proceeds of $628,030.

Each FT unit consists of one common share of the company issued on a flow-through basis and one-half of a common share purchase warrant. Each whole warrant shall entitle the holder to purchase one common share at an exercise price of 85 cents until May 4, 2019. Each unit consists of one common share and one-half of one warrant.

In consideration for their services in connection with the brokered offering, the agents received a cash commission equal to 6 per cent of the gross proceeds of the brokered offering and were issued 62,232 broker warrants. Each broker warrant is exercisable for one unit at a price of 65 cents per unit until May 4, 2019.

Pursuant to the non-brokered offering, the company issued 2,612,200 FT units at a price of 85 cents per FT unit for gross proceeds of $2,220,370, and 655,385 units at a price of 65 cents per unit for gross proceeds of $426,000. The brokered offering and the non-brokered offering are collectively referred to as the offering.

In connection with the non-brokered offering, certain eligible finders received a cash finder's fee equal to 6 per cent of the gross proceeds sourced by such finders, and the company issued to such finders an aggregate of 196,055 finder warrants. Each finder warrant is exercisable for one unit at a price of 65 cents per unit until May 4, 2019.

The net proceeds of the offering will be used for work programs related to advancement and restart of mining operations at the company's PL mine, including a 10,000-metre drill program for definition drilling, resource expansion and property-wide exploration, and revised and updated National Instrument 43-101 technical reports; debt reduction; as well as general working capital purposes.

In addition to the offering, the company has also settled a portion of its previously announced shares-for-debt transaction by issuing an aggregate of 165,549 common shares at a deemed price of 80 cents per common share in settlement of an aggregate of $132,440.09 owed to certain arm's-length parties.

All securities issued pursuant to the offering and the debt settlement will be subject to a statutory hold period expiring on March 5, 2017, in accordance with applicable securities legislation.

About Minnova Corp.

Minnova is focused on restarting the PL mine and expanding gold resources on its PL and Nokomis gold deposits. The company completed an updated PEA (preliminary economic assessment), which supports average annual production of 48,100 ounces over a 10-plus-year mine life. Work to date supports advancing the project toward production with an initial program of detailed definition drilling, to be followed by a future underground test mining and bulk sample program and completion of a feasibility study to bring the PL mine back into production. The PL mine has a valid underground mining licence, an existing flotation mill and over 7,000 metres of developed underground ramp to 135 metres depth, and is fully road accessible and close to existing mining infrastructure in the prolific Flin Flon-Snow Lake greenstone belt of central Manitoba.

Qualified person

Brian Robertson, BSc, PEng, a director of the company and a qualified person under National Instrument 43-101, has reviewed and approved the scientific and technical information in this press release.

We seek Safe Harbor.

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