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by Stockwatch Business Reporter
The TSX Venture Exchange
gained a fraction to close at 541.19 Tuesday. Peter McKeown's first capital pool shell, MG Capital Corp. (MGX: halted), has signed a definitive agreement for its qualifying transaction, which is a B.C. mining deal. Specifically, the shell is acquiring DLP Resources Inc., the owner of two B.C. exploration properties. MG Capital, which has 5.51 million shares issued, will issue 32 million shares to its target's shareholders.
DLP Resources' two properties are called Aldridge and Red Burn Creek. Aldridge, the primary property, covers 4,650 hectares and is a lead-zinc-silver prospect. Red Burn Creek is a copper-cobalt prospect. Earlier this year, the company performed geological mapping at Aldridge. It expects to file on SEDAR a technical report for Aldridge, around the same time that MG Capital will submit its QT filing statement.
Before the QT can close, DLP Resources must raise $1.1-million to finance exploration at Aldridge. This financing requirement was previously for $757,000. DLP now plans to sell at least $575,000 worth of non-flow-through units at 10 cents. Then, for the remainder, it will sell flow-through shares at 13 cents. In the meantime, MG Capital has agreed to lend $25,000 to DLP to finance its completion of the Aldridge technical report. DLP must repay this bridge loan within 90 days.
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