Business
Monarca Minerals Inc. Completes Previously Announced Private Placement
Toronto, Ontario--(Newsfile Corp. - May 10, 2017) - Monarca Minerals Inc. (TSXV: MMN) ("Monarc...
About this update from Monarca Minerals Inc.
[{"type":"text","content":"Monarca Minerals Inc. Completes Previously Announced Private PlacementToronto, Ontario--(Newsfile Corp. - May 10, 2017) - Monarca Minerals Inc. (TSXV: MMN) (\"Monarca\" or the \"Company\") is pleased to announce that it has completed the first tranche of its previous announced non-brokered private placement financing (the \"Financing\"). Under the Financing, Monarca issued 13,232,182 units (the \"Units\") at a price of $0.13 per Unit for gross proceeds of $1,720,183. Each Unit was comprised of one Common Share and one common share purchase warrant (a \"Warrant\"). Each Warrant entitles the holder to acquire one Common Share at a price of $0.18 per share for a period of 36 months from the date of issuance. The Company may raise additional proceeds under the Financing and complete one or more closings. The Units are subject to a four-month hold period expiring on September 10, 2017. The Company paid cash finder's fees of $89,903 and issued 691,563 finder warrants in connection with the Financing. Each finder warrant is exercisable for one Common Share at a price of $0.13 per share for a period of 36 months.Eric Sprott, through 2176423 Ontario Ltd., a corporation which is beneficially owned by him, acquired 3,077,000 Units pursuant to the Financing for total consideration of $400,010. As a result of the Financing, Mr. Sprott is the beneficial owner of 3,077,000 Common Shares and 3,077,000 Warrants representing approximately 7.2% of the issued and outstanding Common Shares on a non-diluted basis and 13.5% on a partially-diluted basis. The above percentages are calculated based on 42,527,321 Common Shares issued and outstanding after giving effect to the Financing. Prior to the Financing, Mr. Sprott did not own any securities of the Company.The Units were acquired by Mr. Sprott through 2176423 Ontario Ltd. for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional securities of the Company either on the open market or through private acquisitions or sell securities of the Company either on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors. A copy of 2176423 Ontario Ltd.'s early warning report will appear on the Company's profile on SEDAR and may also be obtained by calling (416) 362-7172 (200 Bay...