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Mx2 Mining Closes C$16 Million Private Placement

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TORONTO, Nov. 20, 2024 (GLOBE NEWSWIRE) -- Mx2 Mining Inc. (“Mx2” or the “Company”) is pleased to announce the closing of its previously announced brokered private placement (the “Offering”) of common shares of the Company (the “Common Shares”) and subscription receipts of the Company (the “Subscription Receipts”, and together with the Common Shares, the “Offered Securities”). Under the Offering, the Company issued a total of 3,320,000 Common Shares and 28,680,000 Subscription Receipts, at an issue price of C$0.50 per Offered Security, for aggregate gross proceeds of C$16.0 million. Each Subscription Receipt will entitle the holder to receive one Common Share upon the satisfaction of the Escrow Release Conditions (as defined below).

As previously announced by Aya Gold & Silver Inc. on September 12, 2024, the Company has signed a series of non-binding term sheets in relation to the acquisition of the Amizmiz Gold Project (“Amizmiz”) in the Kingdom of Morocco and an option to acquire the Tijirit Gold Project (“Tijirit”) in the Islamic Republic of Mauritania (the “Transactions”). Upon completion of the Transactions, Mx2 will be the 100% owner of the Amizmiz Gold Project and hold an exclusive option to acquire Aya’s 75% interest in the Tijirit Gold Project.

The Offering was led by Eight Capital, as lead agent and sole bookrunner (the “Lead Agent”), on behalf of a syndicate of agents including Beacon Securities Limited and Raymond James Ltd. (collectively, the “Agents”). The net proceeds of the Offering will be used for exploration and development activities on the Amizmiz and Tijirit properties, for working capital and for general corporate purposes.

The gross proceeds of the sale of Subscription Receipts, net of the reasonable costs and expenses of the Agents (the “Net Escrowed Funds”), were deposited in escrow on the closing of the Offering. The Net Escrowed Funds will be released from escrow to the Company upon the completion or the satisfaction of all material conditions precedent to the Transactions, including for certainty the receipt of all required regulatory approvals, as well as certain other standard conditions (the “Escrow Release Conditions”).

In the event that the Escrow Release Conditions are not satisfied on or before the date that is 180 days following the closing of the Offering, the Net Escrowed Funds together with accrued interest earned thereon will be returned to the subscribers of the Subscription Receipts and the Subscription Receipts will be cancelled. To the extent that the Net Escrowed Funds are insufficient to refund 100% of the purchase price of the Subscription Receipts to the subscribers, the Company shall be responsible for any shortfall. Proceeds from the sale of the Common Shares will not be subject to any escrow. The Subscription Receipts and the Common Shares will be subject to an indefinite hold period pursuant to Canadian securities laws.