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MGX Minerals raises C$15.5mln in oversubscribed private placement

The company said funds would be used to advance the company's lithium and magnesium assets
MGX Minerals raises C$15.5mln in oversubscribed private placement
The funding will be used for extraction equipment and PurLucid, property payments and additional acquisitions, engineering studies, permitting activities and for general working capital

MGX Minerals Inc. (CSE:XMG, OTCQB:MGXMF) announced today it has shored up C$15.49mln by way of a non-brokered private placement to advance its lithium and advanced material projects. 

The diversified resource company said the funding will be used for continued investment into extraction equipment and PurLucid, property payments and additional acquisitions, engineering studies, permitting activities and for general working capital.

READ: MGX Minerals' partner at Case Lake expects to complete 15,000 metres of drilling

MGX issued 5.4mln flow-through units at $1.15 per unit, representing gross proceeds of $6.25mln, and 8.4mln non-flow-through units at $1.10 per unit, representing gross proceeds of C$9.2mln. The offering was oversubscribed by 1.09mln flow-through units and 2.02mln non-flow-through units.

Each non-flow-through unit consists of one common share and one common share purchase warrant, which will entitle the holder to acquire one additional common share for a period of 36 months from the date of closing at a price of C$1.20.

Each flow-through unit consists of one common share issued on a flow-through basis pursuant to Canada's Income Tax Act and one-half of one common share purchase warrant. Each flow-through warrant will entitle the holder to acquire one additional common share, on a non-flow-through basis, for a period of 36 months at a price of C$1.20.

The company said the securities issued under the offering are subject to a hold period of four months and one day, adding that the flow-through unit proceeds will be used for qualified mineral exploration expenses on the company's projects in Canada.

The company recently revealed that a demonstration of its lithium and petrolithium extraction and water treatment system (NFLi-5) has been successful. The equipment was showcased at MGX partner PurLucid’s labs in Calgary, Alberta.

Shares of MGX closed at C$1.04 on Monday. 

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