West Vancouver, British Columbia – August 18, 2021 – Magnum Goldcorp Inc. (the “Company” or “Magnum”) announces that, subject to regulatory approval, the Company intends to proceed with a flow through and a non-flow through non-brokered private placement. Under the flow through private placement (the “FT Private Placement”), the Company intends to raise up to $360,000 by the issuance of 6,000,000 flow through shares (the “FT Shares”) at $0.06 per FT Share. Under the non-flow through private placement (the “NFT Private Placement”), the Company intends to raise up to $400,000 by the issuance of 8,000,000 non-flow through units (the “NFT Units”) at $0.05 per NFT Unit. Each NFT Unit will consist 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 5 years at an exercise price of $0.10. The warrants are subject to an acceleration right that allows the Company to give notice of an earlier expiry date if the Company’s share price on the TSX Venture Exchange is equal to or greater than $0.25 for a period of 20 consecutive trading days. With respect to these private placements, the Company may pay finders’ fees in the amount of 10%, payable in cash or NFT Units, based on the sale of the FT Shares and NFT Units purchased by subscribers introduced to the Company by such finders.
The Company intends to use the proceeds from these private placements for further exploration on its “LH Property” and for general working capital purposes.
Magnum has applied for a 2-year Multi-Year Area Based (MYAB) work permit for its LH Property which is in the final stages of review by the Ministry of Energy and Mines and Petroleum Resources. The Company anticipates receiving the work permit for the LH Property in fall, 2021.
The proposed 2021 program emphasizes work in anticipation of determination of an initial Resource Estimate. Approximately 1,100 m of drilling is proposed, together with acquisition of Magnetic Susceptibility and Specific Gravity measurements from archived drill core. Magnetic Susceptibility data will be used in additional processing of existing geophysical to develop 3-dimensional magnetic inversion models with which to develop and confirm sub-surface drill targets.
The LH Underground workings exposed a pyrrhotite-enriched, gold-bearing vein system, subsequently confirmed by 16 diamond drill holes completed in 2015 and 2017 (see the Company’s News Releases dated August 18, 2015 and February 8, 2018, respectively). The Company believes there is a positive correlation between pyrrhotite content and gold grades, with pyrrhotite-rich magnetic anomalies and/or sub-surface drill intercepts correlated to high-grade gold.
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. Access to the LH Property is via Highway 6 for 1.1 km south of Silverton and then via Red Mountain Road for 1.6 km to the Hewitt Mine Road, and then along a four-wheel drive road along Fingland Creek for approximately 5 km.
For further information visit the Company’s website at www.magnumgoldcorp.com.
Magnum Goldcorp Inc.
“Douglas L. Mason”
Douglas L. Mason, Chief Executive Officer
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, including the finder’s fees that may be paid by the Company and the intended use of the proceeds of the private placement, are forward-looking statements and, as such, are subject to risks, uncertainties and other factors which are beyond he 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. 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.
This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein in the United States. The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to the account or benefit of a U.S. person absent an exemption from the registration requirements of such Act.