MX Gold Corp. has closed a private placement of 1.5 million flow-through units at a price of 40 cents per FT unit for proceeds of $600,000. Each FT unit consists of one flow-through common share in the capital of the company and one-half of one transferable common share purchase warrant, with each full warrant entitling the holder to purchase one non-flow-through common share at a price of 75 cents per common share for a period of two years.
The funds are for additional underground development and diamond drilling on the Willa gold-copper-silver deposit. Several areas of known gold-copper and silver mineralization tested from previous surface and underground drilling programs were not included in the last resource study, announced in January, 2016, due to the quality of the data. These areas need to be retested by diamond drilling and can then be included into the next National Instrument 43-101 resource study. Drill testing is required to determine the depth, extent and potential feeder structures of the Willa deposit. In connection with the closing of the financing, MX Gold paid cash finders’ fees of $36,000, a corporate finance fee of $25,000 and issued 90,000 finders’warrants, with each finder’s warrant exercisable at a price of 40 cents per common share for a period of three years. All securities issued in connection with the financing are subject to a statutory hold period expiring on Jan. 22, 2017.
About MX Gold
MX Gold is a junior mining company focused on the mining, exploration and development of advanced projects located in the Kootenay region of British Columbia. The company’s primary focus is its high-grade Willa gold and copper project located 12 kilometres south of Silverton, B.C.