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Magna Terra Minerals Update on the Acquisition of Exploreco Assets from Anaconda Mining Inc.
TORONTO, May 08, 2020 (GLOBE NEWSWIRE) -- Magna Terra Minerals Inc. (the “Company” or “Magna Terra”) (TSX-V: MTT) is pleased to announce that it has been grante
About this update from Magna Terra Minerals Inc
[{"type":"text","content":" TORONTO, May 08, 2020 (GLOBE NEWSWIRE) -- Magna Terra Minerals Inc. (the “Company” or “Magna Terra”) (TSX-V: MTT) is pleased to announce that it has been granted an extension (to August 31, 2020) by Anaconda Mining Inc. (“Anaconda”) to close its previously announced acquisition of all of the issued and outstanding common shares of 2647102 Ontario Inc. (“ExploreCo”), a wholly-owned subsidiary of Anaconda (the “Acquisition”) (see news releases dated October 15 and December 3, 2019 and March 2, 2020), along with an extension from the TSX Venture Exchange (“TSXV”) for the closing of the Acquisition and reverse take-over transaction (the “Reverse Takeover”) (to July 25, 2020) as described below. As previously disclosed by the Company, ExploreCo owns a 100% interest in the Cape Spencer Project situated in New Brunswick and the Great Northern and Viking Projects situated in Newfoundland and Labrador (the “ExploreCo Assets”). Update on the Acquisition and Concurrent Private Placement As previously disclosed, the Shareholders of the Company, at an Annual and Special Meeting held on February 27th, overwhelmingly approved the Acquisition, concurrent share consolidation, the Reverse Takeover, and the minimum financing required to close the Acquisition. As a result of the COVID-19 pandemic, the Company was forced to pause its marketing efforts in Mid-March, which necessitated the extension requests. At this time, the Company is proceeding with a non-brokered private placement of units and flow-through shares for minimum gross proceeds of $3.1 million and maximum gross proceeds of $3.5 million (the “Offering”). The Offering consists of, on a post-consolidation basis, (i) flow-through common shares (the “FT Shares”) at a price of $0.25 per share for minimum of gross proceeds of $1.3 million (5.2 million FT Shares) and maximum gross proceeds of $1.7 million (6.8 million FT Shares) and (i) units of the Company (the “Units”) at a price of $0.20 per Unit for gross proceeds of $1.8 million (9 million units). Each Unit is comprised of one common share and one-half of one share purchase warrant (each whole warrant being a “Warrant”), each Warrant entitling the holder thereof to purchase one additional common share of the Company at a price of $0.30 per share for a period of 24 months following the closing. The Warrants will also be subject to an acc...