Mr. James Brown reports
MILL CITY COMPLETES $300,000 NON-BROKERED PRIVATE PLACEMENT FINANCING
Mill City Gold Corp. has closed its previously announced non-brokered private placement of units to raise gross proceeds of $300,000. In connection with the financing, Mill City issued a total of six million units. Each unit was issued at a price of five cents per unit and consisted of one common share of Mill City and one common share purchase warrant, each warrant entitling the holder thereof to acquire one additional common share of Mill City for a period of 60 months at a price of 10 cents per share. All securities issued in connection with the private placement are subject to a statutory hold period expiring July 30, 2012.
A director and officer of the company participated in the private placement, constituting a related-party transaction pursuant to TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101. The company relied on Section 5.5(a) of MI 61-101 for an exemption from the formal valuation requirement and Section 5.7(1)(a) of MI 61-101 for an exemption from the minority shareholder approval requirement of MI 61-101 as the fair market value of the transaction did not exceed 25 per cent of the company's market capitalization.
Proceeds of the financing will be used for general corporate purposes.