Post by Zoinkers on Aug 25, 2006 17:40:01 GMT -5
Press Release Source: Morgain Minerals Inc.
Morgain Negotiates Private Placement
Thursday August 24, 9:30 am ET
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Aug 24, 2006 -- Morgain Minerals Inc. ("Morgain" or "the Company") (TSX VENTURE:MGM.V - News) is pleased to announce that it has arranged for both a brokered and non-brokered private placement.
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Brokered Private Placement
The Company has entered into an agreement letter with Canaccord Capital Corporation (the "Agent") to act as exclusive agent on a best efforts brokered private placement of up to 3,714,286 units of the Company (the "Brokered Units") at a price of CDN$ 0.35 per Unit, for total gross proceeds of up to CDN$ 1,300,000 (the "Brokered Offering"). Each Brokered Unit will consist of one common share of the Company (a "Share") and one common share purchase warrant (a "Warrant"). Each Warrant entitles the holder to purchase one additional Share at a price of CDN$ 0.50 for a period of two years from the closing.
Morgain has agreed to pay the Agent a commission of 8.0% of the gross proceeds raised in the Brokered Offering upon closing, payable in cash. The Agent will also receive common share purchase warrants ("Agent's Warrants"), equal to 15% of the Brokered Offering sold. Each Agent's Warrant entitles the Agent to purchase one Share at a price of CDN$ 0.50 for a period of two years from the closing. In addition, the Agent will be paid a corporate finance fee of 150,000 units of the Company having the same terms as the Brokered Units offered in the Brokered Offering and an administration fee of CDN$ 10,000.
Non-Brokered Private Placement
The Company also wishes to announce a non-brokered private placement of up to 2,000,000 units of the Company (the "Non-Brokered Units") at a price of CDN$ 0.35 per Unit, for total gross proceeds of up to CDN$ 700,000 (the "Non-Brokered Offering"). Each Unit will consist of one Share and one Warrant. Each warrant entitles the holder to purchase one additional Share at a price of CDN$ 0.50 for a period of two years from the closing.
Morgain has agreed to pay a finders fee of 8.0% on CDN$ 500,000 of the gross proceeds raised in the Non-Brokered Offering upon closing, payable in cash.
Use of Proceeds
The proceeds from the Offerings, which are subject to regulatory acceptance, will be used for working capital purposes, to initiate a 43-101 compliant mineral resource estimate for the Company's La Fortuna Gold Project in Mexico and to advance the Company's Castillo Gold Project in Mexico, including infill drilling, finalization of start-up pit design, completion of crushing tests, finalization of permitting process, and site infrastructure construction.
About Morgain Minerals Inc.
Morgain Minerals is a resource exploration company with a number of precious and base metal properties in Mexico. Its corporate strategy is to acquire properties with known resources that can be further developed to production status. Visit our website at www.morgainminerals.com for the latest corporate information.
The TSX Venture Exchange has neither approved nor disapproved of the information contained herein.
Contact:
Contacts:
Morgain Minerals Inc.
Chris Babsmall thingy
President and CEO
(604) 643-1727
(604) 643-1726 (FAX)
cbabsmall thingy@morgainminerals.com
www.morgainminerals.com
Morgain Negotiates Private Placement
Thursday August 24, 9:30 am ET
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Aug 24, 2006 -- Morgain Minerals Inc. ("Morgain" or "the Company") (TSX VENTURE:MGM.V - News) is pleased to announce that it has arranged for both a brokered and non-brokered private placement.
ADVERTISEMENT
Brokered Private Placement
The Company has entered into an agreement letter with Canaccord Capital Corporation (the "Agent") to act as exclusive agent on a best efforts brokered private placement of up to 3,714,286 units of the Company (the "Brokered Units") at a price of CDN$ 0.35 per Unit, for total gross proceeds of up to CDN$ 1,300,000 (the "Brokered Offering"). Each Brokered Unit will consist of one common share of the Company (a "Share") and one common share purchase warrant (a "Warrant"). Each Warrant entitles the holder to purchase one additional Share at a price of CDN$ 0.50 for a period of two years from the closing.
Morgain has agreed to pay the Agent a commission of 8.0% of the gross proceeds raised in the Brokered Offering upon closing, payable in cash. The Agent will also receive common share purchase warrants ("Agent's Warrants"), equal to 15% of the Brokered Offering sold. Each Agent's Warrant entitles the Agent to purchase one Share at a price of CDN$ 0.50 for a period of two years from the closing. In addition, the Agent will be paid a corporate finance fee of 150,000 units of the Company having the same terms as the Brokered Units offered in the Brokered Offering and an administration fee of CDN$ 10,000.
Non-Brokered Private Placement
The Company also wishes to announce a non-brokered private placement of up to 2,000,000 units of the Company (the "Non-Brokered Units") at a price of CDN$ 0.35 per Unit, for total gross proceeds of up to CDN$ 700,000 (the "Non-Brokered Offering"). Each Unit will consist of one Share and one Warrant. Each warrant entitles the holder to purchase one additional Share at a price of CDN$ 0.50 for a period of two years from the closing.
Morgain has agreed to pay a finders fee of 8.0% on CDN$ 500,000 of the gross proceeds raised in the Non-Brokered Offering upon closing, payable in cash.
Use of Proceeds
The proceeds from the Offerings, which are subject to regulatory acceptance, will be used for working capital purposes, to initiate a 43-101 compliant mineral resource estimate for the Company's La Fortuna Gold Project in Mexico and to advance the Company's Castillo Gold Project in Mexico, including infill drilling, finalization of start-up pit design, completion of crushing tests, finalization of permitting process, and site infrastructure construction.
About Morgain Minerals Inc.
Morgain Minerals is a resource exploration company with a number of precious and base metal properties in Mexico. Its corporate strategy is to acquire properties with known resources that can be further developed to production status. Visit our website at www.morgainminerals.com for the latest corporate information.
The TSX Venture Exchange has neither approved nor disapproved of the information contained herein.
Contact:
Contacts:
Morgain Minerals Inc.
Chris Babsmall thingy
President and CEO
(604) 643-1727
(604) 643-1726 (FAX)
cbabsmall thingy@morgainminerals.com
www.morgainminerals.com