MEXICAN GOLD CORP. (“Mexican Gold” or the “Company”) (TSX VENTURE:MEX) is pleased to announce that it has arranged a non-brokered private placement (the “Private Placement“) of up to 5,000,000 units of the Company (the “Units“) at a price of $0.30 per Unit for gross proceeds of up to $1,500,000. Each Unit will consist of one common share of the Company (a “Common Share“) and one transferable common share purchase warrant (a “Warrant”). Each Warrant will entitle the holder to purchase one Common Share at a price of $0.45 per Common Share for a period of twenty-four months from the closing date of the Private Placement.
The net proceeds from the Private Placement will be used to continue exploration on the Company’s Las Minas Project located in the State of Veracruz, Mexico, and for property payments, and general working capital purposes.
In connection with the Private Placement, certain arm’s length parties may receive a cash finder’s fee payment equal to 7% of the gross proceeds of the Units that are sold to subscribers introduced by such parties. The finder’s fee payment is subject to the approval of the TSX Venture Exchange (the “Exchange“).
Closing of the Private Placement is anticipated to occur on or about May 5, 2017, and is subject to receipt of all required regulatory approvals including the approval of the Exchange.