Magna Terra Minerals Inc. is pleased to announce that it has been granted an extension (to August 31, 2020) by Anaconda Mining Inc. (“Anaconda”) to close its previously announced acquisition of all of the issued and outstanding common shares of 2647102 Ontario Inc. (“ExploreCo”), a wholly-owned subsidiary of Anaconda (the “Acquisition”) (see news releases dated October 15 and December 3, 2019 and March 2, 2020), along with an extension from the TSX Venture Exchange (“TSXV”) for the closing of the Acquisition and reverse take-over transaction (the “Reverse Takeover”) (to July 25, 2020) as described below.
As previously disclosed by the Company, ExploreCo owns a 100% interest in the Cape Spencer Project situated in New Brunswick and the Great Northern and Viking Projects situated in Newfoundland and Labrador (the “ExploreCo Assets”).
Update on the Acquisition and Concurrent Private Placement
As previously disclosed, the Shareholders of the Company, at an Annual and Special Meeting held on February 27th, overwhelmingly approved the Acquisition, concurrent share consolidation, the Reverse Takeover, and the minimum financing required to close the Acquisition. As a result of the COVID-19 pandemic, the Company was forced to pause its marketing efforts in Mid-March, which necessitated the extension requests. At this time, the Company is proceeding with a non-brokered private placement of units and flow-through shares for minimum gross proceeds of $3.1 million and maximum gross proceeds of $3.5 million (the “Offering”). The Offering consists of, on a post-consolidation basis, (i) flow-through common shares (the “FT Shares”) at a price of $0.25 per share for minimum of gross proceeds of $1.3 million (5.2 million FT Shares) and maximum gross proceeds of $1.7 million (6.8 million FT Shares) and (i) units of the Company (the “Units”) at a price of $0.20 per Unit for gross proceeds of $1.8 million (9 million units). Each Unit is comprised of one common share and one-half of one share purchase warrant (each whole warrant being a “Warrant”), each Warrant entitling the holder thereof to purchase one additional common share of the Company at a price of $0.30 per share for a period of 24 months following the closing. The Warrants will also be subject to an accelerated expiry provision whereby should the common shares of the Company trade on the Exchange at a price of $0.50 or more for a period of 10 consecutive trading days, the Warrants will expire 30 days following the receipt of a written notice to that effect from the Company.
The closing of the Offering is conditional upon (i) the Company having received subscriptions for FT Shares and Units for minimum proceeds of $3.1 million (5.2 million FT Shares and 9 million Units); (ii) the closing of the Acquisition; and (v) the receipt of all required regulatory approvals including, without limitation, the approval of the TSXV for the Acquisition, Reverse Takeover and the Offering.
“Over the past 8 weeks, as a result of the COVID-19 pandemic, the Company had to pause its efforts to close the ExploreCo Acquisition while the markets adjusted to the impact of the pandemic. The final step to closing the Acquisition will be meeting our minimum financing condition and final approvals of the TSXV. We will now move actively to complete these remaining conditions, and look forward to commencing our exploration plans this summer after closing; which includes drill programs on each project, where strict adherence to Provincial health guidelines around COVID-19 will be followed, to ensure the health and safety of our personnel and the communities where we will be operating.”
– Lew Lawrick, President & CEO, Magna Terra Minerals Inc.
About Magna Terra
Magna Terra Minerals Inc. is a precious metals focused exploration company, headquartered in Toronto, Canada. With the closing of the ExploreCo Acquisition, Magna Terra will have 2 district-scale, advanced gold exploration projects in the world class mining jurisdictions of New Brunswick and Newfoundland and Labrador. The Company maintains a significant exploration portfolio in the province of Santa Cruz, Argentina which includes its precious metals discovery on its Luna Roja Project, as well as an extensive portfolio of district scale drill ready projects available for option or joint venture.
FOR FURTHER INFORMATION PLEASE CONTACT:
Magna Terra Minerals Inc.
Lewis Lawrick, President & CEO
647-478-5307
Email: info@magnaterraminerals.com
Website: www.magnaterraminerals.com