West Vancouver, British Columbia – August 24, 2016 – Magnum Goldcorp Inc. (the “Company” or “Magnum”) – Further to the Company’s news releases of May 11, 2016, June 22, 2016, July 16, 2016 and August 5, 2016, Magnum is pleased to announce that it has closed the second tranche of its flow through and non-flow through non-brokered private placement. Under the first tranche, the Company raised $51,500 by the issuance of 562,500 flow through shares (the “FT Shares”) at $0.08 per FT Share and 100,000 non-flow through units (the “NFT Units”) at $0.065 per NFT Unit, and under the second tranche, the Company has raised an additional $132,600 by the issuance of 2,040,000 NFT Units. Each NFT Unit consists of one common share and one share purchase warrant, with each warrant entitling the holder to purchase an additional common share for a period of 2 years at an exercise price of $0.10. Finder’s Fees in the amount of $650 were paid in NFT Units (10,000 NFT Units at $0.065 per NFT Unit) in connection with the non-flow through private placement. All the securities issued pursuant to the second tranche of the private placement are subject to a hold period expiring December 25, 2016.
An Insider of the Company has subscribed for NFT Units under the private placement. The issuance of NFT Units to the insider pursuant to the private placement (the “Insider Participation”) will be considered to be a related party transaction within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 (“MI 61-101”). The Company intends to rely on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in Sections 5.5(b) and 5.7(1)(b) of MI 61-101 in respect of any Insider Participation.
The proceeds from this private placement will be used for Magnum’s 2016 exploration program on its “LH Property” and for general working capital. The LH Property is a gold exploration property consisting of 19 contiguous crown granted claims and 7 mineral claims, located approximately 7 km south of Silverton, British Columbia, on the east side of Slocan Lake. As announced April 27, 2016, Magnum now owns 100% of the LH Property. See the Company’s website (www.magnumgoldcorp.com) for recent news releases and technical report information regarding Magnum’s LH Property project.
For further information, contact Mr. Clive Shallow, Shareholder Communications, at 604-922 2030 or visit the company’s website at www.magnumgoldcorp.com.
Magnum Goldcorp Inc.
“Douglas L. Mason”
Douglas L. Mason, CEO
Neither the TSX Venture Exchange nor its Regulation Services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release
This news release includes certain statements that may be deemed “forward-looking statements” within the meaning of applicable securities legislation. All statements, other than statements of historical facts, that address such matters as future exploration, drilling, exploration activities, potential mineralization and resources and events or developments that the Company expects, are forward looking statements and, as such, are subject to risks, uncertainties and other factors of which are beyond the reasonable control of the Company. Such statements are not guarantees of future performance and actual results or developments may differ materially from those expressed in, or implied by, this forward-looking information. Factors that could cause actual results to differ materially from those in forward-looking statements include such matters as market prices, exploitation and exploration results, continued availability of capital and financing, and general economic, market or business conditions. Any forward-looking statements are expressly qualified in their entirety by this cautionary statement. The information contained herein is stated as of the current date and subject to change after that date and the Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.