Mineral Mountain Resources Ltd. (Mineral Mountain or the Company) (TSXV: MMV)(OTCQX: MNRLF) is pleased to announce that it has entered into an engagement letter with a syndicate of agents led by Canaccord Genuity Corp. and including Industrial Alliance Securities Inc. (the Agents) to sell on a commercially reasonable efforts basis up to 2,000,000 units (the Units) at a price of C$0.50 per Unit and up to 3,400,000 flow-through common shares (the Flow-Through Shares) at a price of C$0.60 per Flow-Through Share for aggregate gross proceeds of up to C$3,040,000 (the Offering). In addition, the Company will grant the Agents an over-allotment option, exercisable 48 hours prior to the closing of the Offering, to sell, in any combination of Units and Flow-Through Shares an additional 15% of the Offering.
Each Unit shall consist of one common share of the Company and one half of one common share purchase warrant (each whole warrant, a Warrant). Each whole Warrant shall be exercisable into one common share of the Company for a period of 24 months from closing at an exercise price of C$0.60 in the first year and C$0.70 in the second year.
As consideration for the services of the Agents, the Agents will receive 7% of the gross proceeds raised in the Offering, payable in cash, and that number of warrants (the Agent Warrants) equal to 7% of the securities sold under the Offering. Each whole Agent Warrant shall be exercisable into one common share of the Company for a period of 24 months from closing at an exercise price of C$0.60 in the first year and C$0.70 in the second year.
The funds raised from the issuance of the Units will be used for exploration of its mineral properties and for general working capital purposes and the funds raised from the issuance of the Flow-Through Shares will be used for general exploration expenditures, which will constitute Canadian exploration expenses (as defined in the Income Tax Act).
About Mineral Mountain
The Company is a British Columbia-based company primarily engaged in the acquisition of mineral resource properties in Canada and the exploration of such properties for minerals. Minerals of interest to the company include precious metals including gold and silver and base metals including zinc, lead and copper.
On Behalf of the Board of Directors of
MINERAL MOUNTAIN RESOURCES LTD.
Nelson W. Baker, President and CEO
For further information, please contact
Brad Baker, Vice-President Corporate Development & Director
Kin Communications Inc.
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