Owner
Post by Franko10 ™ on Sept 16, 2004 7:29:47 GMT -5
Thu Aug 14, 2003
Private Placement of 7,380,000 Units Closed
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Morgain Minerals Inc. (the "Company" TSX: MGM) is pleased to announce that the private placement of 7,380,000 Units of the Company announced on June 24, 2003, (the "Offering") was completed on August 8, 2003. Each Unit consists of one common share of the Company and one share purchase warrant, which is exercisable into an additional common share for a period of two years at an exercise price of $0.17 during the first year and $0.22 during the second year. For its assistance in the private placement, Haywood Securities Inc, ("Haywood") is entitled to a finder's fee of $49,439.60, representing 7% of the gross proceeds raised with the assistance of Haywood. This finder's fee may be paid in cash or in Units at the option of Haywood. Haywood will also receive as a commission 588,566 Units, or 10% of the Units issued under the Offering with the assistance of Haywood.
The Company is a "Qualifying Issuer", as defined in Multilateral Instrument 45-102, and accordingly, any shares issued pursuant to this Offering as part of a Unit or acquired on exercise of a warrant are subject to restrictions on resale until December 9, 2003 in British Columbia, Alberta and Ontario.
The proceeds from the private placement are being used to complete a bankable feasibility study on the El Cairo Gold Project in Durango, Mexico which will consist primarily of metallurgical work as recommended by A.C.A. Howe International Limited in a Pre-Feasibility Report dated September, 2002 and revised January, 2003 and for general working capital.
Howe reports in the Pre-Feasibility Study that higher-grade gold zones exist near surface and recommends that the Company consider mining at an annual rate of 1.0 million tonnes for the first eight (8) years. According to Howe the El Cairo Gold Project would generate positive pre-tax cash flows during this period. This is illustrated below for the first three (3) years of production based on the base case run of mine scenario and an average gold price of US $350 per ounce. Estimated capital cost is US $3.0 million; pay-back period 5-7 months.
Year 1 Year 2 Year 3
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Grade g/t Au 1.43 2.06 1.34
Ozs produced 42,898 52,886 37,805
Pre-tax Cash Flow $6,776,700 $12,987,300 $6,518,600
Recovery 75% 75% 75%
Payback Period 5 months
Cash Cost/oz $192 $104 $178
Private Placement of 7,380,000 Units Closed
--------------------------------------------------------------------------------
Morgain Minerals Inc. (the "Company" TSX: MGM) is pleased to announce that the private placement of 7,380,000 Units of the Company announced on June 24, 2003, (the "Offering") was completed on August 8, 2003. Each Unit consists of one common share of the Company and one share purchase warrant, which is exercisable into an additional common share for a period of two years at an exercise price of $0.17 during the first year and $0.22 during the second year. For its assistance in the private placement, Haywood Securities Inc, ("Haywood") is entitled to a finder's fee of $49,439.60, representing 7% of the gross proceeds raised with the assistance of Haywood. This finder's fee may be paid in cash or in Units at the option of Haywood. Haywood will also receive as a commission 588,566 Units, or 10% of the Units issued under the Offering with the assistance of Haywood.
The Company is a "Qualifying Issuer", as defined in Multilateral Instrument 45-102, and accordingly, any shares issued pursuant to this Offering as part of a Unit or acquired on exercise of a warrant are subject to restrictions on resale until December 9, 2003 in British Columbia, Alberta and Ontario.
The proceeds from the private placement are being used to complete a bankable feasibility study on the El Cairo Gold Project in Durango, Mexico which will consist primarily of metallurgical work as recommended by A.C.A. Howe International Limited in a Pre-Feasibility Report dated September, 2002 and revised January, 2003 and for general working capital.
Howe reports in the Pre-Feasibility Study that higher-grade gold zones exist near surface and recommends that the Company consider mining at an annual rate of 1.0 million tonnes for the first eight (8) years. According to Howe the El Cairo Gold Project would generate positive pre-tax cash flows during this period. This is illustrated below for the first three (3) years of production based on the base case run of mine scenario and an average gold price of US $350 per ounce. Estimated capital cost is US $3.0 million; pay-back period 5-7 months.
Year 1 Year 2 Year 3
--------------------------------------------------------
Grade g/t Au 1.43 2.06 1.34
Ozs produced 42,898 52,886 37,805
Pre-tax Cash Flow $6,776,700 $12,987,300 $6,518,600
Recovery 75% 75% 75%
Payback Period 5 months
Cash Cost/oz $192 $104 $178
