Business
DLP Resources Parent Company Announces Private Placement of Flow-Through and Non-Flow-Through Shares
Cranbrook, British Columbia--(Newsfile Corp. - July 9, 2020) - MG Capital Corporation (TS...
About this update from Dlp Resources, Inc.
[{"type":"text","content":"DLP Resources Parent Company Announces Private Placement of Flow-Through and Non-Flow-Through SharesCranbrook, British Columbia--(Newsfile Corp. - July 9, 2020) - MG Capital Corporation (TSXV: DLP) (the \"Company\"), the parent company of DLP Resources Inc., is pleased to announce a non-brokered private placement of up to 2,631,578 common shares of the Company (the \"Common Shares\") at a price of $0.19 per Common Share and up to 4,347,826 flow-through common shares of the Company (the \"FT Shares\") at a price of $0.23 per FT Share, for combined gross proceeds of approximately $1,500,000 (the \"Financing\"). The Company intends to pay finder's fees in connection with the Financing to certain eligible finders in the form of: (i) a cash commission of 7.5% of the gross proceeds raised under the Financing from investors introduced to the Company by the finder; and (ii) the issuance of such number of non-transferable common share purchase warrants of the Company (the \"Finder's Warrants\") equal to 7.5% of the combined Common Shares and FT Shares issued under the Financing from investors introduced to the Company by the finder. Each Finder's Warrant will entitle the holder thereof to acquire one common share of the Company for an exercise price of $0.20 per share for a period of two years from closing of the Financing. The Company intends to use the proceeds from the Financing as follows:  PurposeAmount Mapping, sampling and drilling of the Company's Aldridge 1 Property$413,000 Mapping, sampling and drilling of the Company's Aldridge 2 Property$267,000 Mapping, sampling and drilling of the Company's Hungry Creek Property$200,000 Mapping, sampling and drilling of the Company's Redburn Creek Property$150,000 Mapping, sampling and drilling of the DD Project under option from PJX Resources Inc.$350,000 General operating expenses$120,000 Total$1,500,000 If the Company does not raise the anticipated proceeds disclosed in this news release, the amounts allocated to mapping, sampling and drilling outlined in the table above will be decreased as necessary. The Company intends to spend the funds available to it as stated in this news release. There may be circumstances, however, where, for sound business reasons, a reallocation of funds may be necessary.Existing Shareholder Exemption and Investment...