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Mexican Gold Mining Private Placement With Lead Order From Palisades Goldcorp
VANCOUVER, British Columbia, Jan. 13, 2021 (GLOBE NEWSWIRE) -- Mexican Gold Mining Corp. (the “Company” or “Mexican Gold") (TSXV: MEX), is pleased to announce t
About this update from Mexican Gold Mining Corp.
[{"type":"text","content":" VANCOUVER, British Columbia, Jan. 13, 2021 (GLOBE NEWSWIRE) -- Mexican Gold Mining Corp. (the “Company” or “Mexican Gold\") (TSXV: MEX), is pleased to announce that further to its news release dated December 29, 2020, regarding its non-brokered private placement of 20 million common shares (the “Shares”) at an issue price of $0.07 per Share (the “Private Placement”), it has received a lead order from Palisades Goldcorp Ltd. (“Palisades”), which is subscribing for 15 million of those Shares. The Private Placement, subject to acceptance by the TSX Venture Exchange, will raise aggregate gross proceeds of $1,400,000 to be used for exploration and advancement of the Company’s Las Minas Project, payment of outstanding invoices, and for general working capital. No finders’ fees are to be paid in connection with the Private Placement. Palisades, a Control Person of the Company, has subscribed for an aggregate of 15 million Shares demonstrating continued support of the Company’s growth plans. Presently Palisades holds approximately 37% of Mexican Gold’s issued and outstanding common shares and, following closing of the Private Placement, will hold approximately 43% of the then issued and outstanding common shares. As background, Palisades acquired a control position in the Company on January 16, 2020 (see news release dated January 16, 2020), pursuant to private transactions whereby Palisades acquired directly and indirectly approximately 37% of Mexican Gold’s issued and outstanding common shares. At the annual general and special meeting of shareholders of the Company held December 16, 2020, the disinterested shareholders voted in favour of Palisades’ control position. This shareholder approval also ratified Palisades’ previous private acquisitions of securities in the Company and permitted Palisades to participate in future Mexican Gold private placement offerings. Palisades is a Canadian resource-focused merchant bank and it shares a common director and officer with the Company. Philip O’Neill, Chief Executive Officer, President and a director of the Company also serves as Chief Operating Officer and a director of Palisades. The acceptance of Palisades’ participation in the Private Placement has, as such, been unanimously approved by the Company’s board of directors, including all non-conflicted and all independent directors of the C...