Mr. Lawrence Roulston reports
MOUNTAIN BOY ANNOUNCES CLOSING OF SILVER COIN SALE, SHARE CONSOLIDATION AND PRIVATE PLACEMENT
Mountain Boy Minerals Ltd. has arranged a share consolidation on a one-new-for-five-old basis. The company has also arranged a $300,000 private placement with 25-cent units (postconsolidation), subject to TSX Venture Exchange approval.
Mountain Boy Minerals has closed the previously announced transaction to sell its 20-per-cent interest in the Silver Coin property to Ascot Resources Ltd. Mountain Boy Minerals has now transferred its interest in the property to Ascot Resources. The company received 3,794,874 common shares of Ascot Resources as consideration.
In order to tighten the share structure of Mountain Boy Minerals and allow it to focus on advancing its exploration projects in the Golden Triangle of British Columbia with additional capital, the company is proceeding with a consolidation of its issued and outstanding common shares on the basis of one postconsolidation common share for every five preconsolidated common shares.
Currently, a total of 168,351,910 common shares of Mountain Boy Minerals are issued and outstanding. After the consolidation, Mountain Boy Minerals will have approximately 33,670,382 issued and outstanding common shares, prior to the private placement.
Mountain Boy Minerals is completing a private placement in order to finance certain continuing exploration programs and for working capital. These funds, combined with the Ascot Resources shares received, will put Mountain Boy Minerals in a strong working capital position.
The non-brokered private placement will consist of up to 1.2 million units at 25 cents per unit (postconsolidation). Each unit will consist of one common share of Mountain Boy Minerals and one common share purchase warrant. Each whole warrant will be exercisable for one common share of Mountain Boy Minerals at a price of 30 cents (postconsolidation) for a period of two years from the date of issuance.
Subject to the approval of the TSX-V and applicable laws, Mountain Boy Minerals may pay finders' fees. Certain of the company's insiders may participate in the private placement.
About Mountain Boy Resources Ltd.
Mountain Boy Resources is a Canadian-based mineral exploration company with a property portfolio of gold and silver projects within the Stewart region in the very prolific Golden Triangle region of British Columbia. In addition to the Red Cliff interest, Mountain Boy Resources owns 100 per cent of the high-grade MB silver project as well as 100 per cent of the BA and Surprise Creek volcanic massive sulphide (VMS) copper-lead-zinc-silver projects.
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