Owner
Post by Franko10 ™ on Sept 13, 2005 18:26:52 GMT -5
Magnum Announces Private Placement and Debt Settlement (ccnm)
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 13, 2005) - Magnum Minerals Corp. (the "Company") (NEX:MM.H) is pleased to provide an update in connection with its ongoing reorganization.
As noted in previous press releases, through its wholly-owned subsidiary, the Company has recently acquired, by staking, the historic Stanley Uranium District in Custer County, Idaho. The Company has finalized the National Instrument 43-101 compliant property report (the "Report") in order to gain TSX acceptance of its recently acquired Idaho land holdings.
In order to fund a minimum drill program of $500,000 and provide sufficient unallocated working capital, the Company today is announcing a non-brokered private placement whereby it intends to raise up to $2,000,000 by offering units (the "Units") to qualified investors, subject to a 25% allowance for oversubscriptions. The Units will be sold at a price of $0.50 and will consist of one common share and one-half of one share purchase warrant, where one whole warrant will entitle the holder to acquire an additional common share at a price of $0.75 for one year from closing, and at a price of $1.00 in year two. Commissions or finder's fees may be paid to qualified entities at the rates allowed by the TSX Venture Exchange.
The Company also announces a concurrent debt settlement whereby it will issue common shares at a deemed value of $0.50 to creditors to settle debts aggregating approximately $4,251,249. These debts arose in connection with the failed business operated by the Company's predecessor. The debt settlement was approved by shareholders at the Company's last annual general meeting and, upon its completion, the Company will be substantially debt free.
Concurrently with the completion of the new financing and the completion of the debt settlement, the Company intends to convert $350,000 in existing convertible notes issued in January 2005 into units at a deemed price of $0.40 per unit. These units will consist of one common share and one common share purchase warrant, where one warrant is exercisable at a price of $0.50 to purchase one additional share until January 17, 2006.
Upon regulatory acceptance and completion of the above-matters, the Company expects to be reinstated to Tier 2 of the TSX Venture Exchange as a junior mining exploration company and to proceed with the exploration of its prospective uranium assets.
The Company also wishes to announce the results of its annual general meeting (the "Meeting") of shareholders held on September 13, 2005. At the Meeting, shareholders reappointed the incumbent auditor and elected as directors Messrs. Bob Nowell, Norman Eyolfson, John Carden and Patrick Downey. Shareholders further approved a special resolution authorizing a name change to "Magnum Uranium Corp." The Company will proceed with this name change immediately.
At a directors' meeting held immediately following the Meeting, Mr. Eyolfson was re-appointed as President and Chief Executive Officer, and Mr. Nowell was re-appointed as Chief Financial Officer and Secretary.
On Behalf of the Board of Directors
MAGNUM MINERALS CORP.
Norm Eyolfson, President
FOR FURTHER INFORMATION PLEASE CONTACT:
Magnum Minerals Corp.
Chris Bogart
(604) 683-2505
(604) 683-2506 (FAX)
The TSX Venture Exchange has neither approved or disapproved of the contents herein.
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 13, 2005) - Magnum Minerals Corp. (the "Company") (NEX:MM.H) is pleased to provide an update in connection with its ongoing reorganization.
As noted in previous press releases, through its wholly-owned subsidiary, the Company has recently acquired, by staking, the historic Stanley Uranium District in Custer County, Idaho. The Company has finalized the National Instrument 43-101 compliant property report (the "Report") in order to gain TSX acceptance of its recently acquired Idaho land holdings.
In order to fund a minimum drill program of $500,000 and provide sufficient unallocated working capital, the Company today is announcing a non-brokered private placement whereby it intends to raise up to $2,000,000 by offering units (the "Units") to qualified investors, subject to a 25% allowance for oversubscriptions. The Units will be sold at a price of $0.50 and will consist of one common share and one-half of one share purchase warrant, where one whole warrant will entitle the holder to acquire an additional common share at a price of $0.75 for one year from closing, and at a price of $1.00 in year two. Commissions or finder's fees may be paid to qualified entities at the rates allowed by the TSX Venture Exchange.
The Company also announces a concurrent debt settlement whereby it will issue common shares at a deemed value of $0.50 to creditors to settle debts aggregating approximately $4,251,249. These debts arose in connection with the failed business operated by the Company's predecessor. The debt settlement was approved by shareholders at the Company's last annual general meeting and, upon its completion, the Company will be substantially debt free.
Concurrently with the completion of the new financing and the completion of the debt settlement, the Company intends to convert $350,000 in existing convertible notes issued in January 2005 into units at a deemed price of $0.40 per unit. These units will consist of one common share and one common share purchase warrant, where one warrant is exercisable at a price of $0.50 to purchase one additional share until January 17, 2006.
Upon regulatory acceptance and completion of the above-matters, the Company expects to be reinstated to Tier 2 of the TSX Venture Exchange as a junior mining exploration company and to proceed with the exploration of its prospective uranium assets.
The Company also wishes to announce the results of its annual general meeting (the "Meeting") of shareholders held on September 13, 2005. At the Meeting, shareholders reappointed the incumbent auditor and elected as directors Messrs. Bob Nowell, Norman Eyolfson, John Carden and Patrick Downey. Shareholders further approved a special resolution authorizing a name change to "Magnum Uranium Corp." The Company will proceed with this name change immediately.
At a directors' meeting held immediately following the Meeting, Mr. Eyolfson was re-appointed as President and Chief Executive Officer, and Mr. Nowell was re-appointed as Chief Financial Officer and Secretary.
On Behalf of the Board of Directors
MAGNUM MINERALS CORP.
Norm Eyolfson, President
FOR FURTHER INFORMATION PLEASE CONTACT:
Magnum Minerals Corp.
Chris Bogart
(604) 683-2505
(604) 683-2506 (FAX)
The TSX Venture Exchange has neither approved or disapproved of the contents herein.
