THUNDER BAY, Ontario--(BUSINESS WIRE)--Mega Precious Metals Inc. (MGP:TSX-V) (“Mega” or the "Corporation") is pleased to announce the establishment of a Project Participation Framework that will be used to identify opportunities whereby stakeholders, including local communities and government, can participate in the development of Mega’s Monument Bay Project. Guided by this framework, and through the collaborative efforts of Red Sucker Lake First Nation (“RSLFN”) and the Province of Manitoba, opportunities for participation by RSLFN have been identified surrounding employment training, business development and land use mapping.
To fund these initiatives, it is proposed that the RSLFN will participate in a non-brokered private placement of 786,000 units of the Corporation ("Units") through a trust (the "RSLFN Trust") for the benefit of the RSLFN at a price of $0.51 per Unit for gross proceeds of approximately $400,000. The gross proceeds of the Units sold under the private placement will be used in connection with the Monument Bay Project for costs associated with the above initiatives involving RSLFN.
Jim Rogers, President and CEO of Mega stated: “The progressive attitude toward economic development demonstrated by Red Sucker Lake First Nation and the Province of Manitoba and, more specifically, the creative thinking of Chief Larry Knott (Red Sucker Lake First Nation), Minister Dave Chomiak (the Province of Manitoba) and Louis Harper (Manitoba Keewatinowi Okimakanack Inc. (MKO)) have been instrumental to the success of this initiative. This initiative will not only support the timely and sustainable development of Mega’s Monument Bay Project, but will provide a foundation for increased economic activity in and around the region. We look forward to growing our relationship with the community and to sharing in the benefits that will come by way of the Monument Bay Project.”
Pursuant to the private placement, each Unit will be comprised of one common share of the Corporation (collectively the "Unit Shares") and one-half of one share purchase warrant of the Corporation (each whole warrant, a "Warrant"). Each Warrant will be exercisable to purchase one common share of the Corporation (a "Warrant Share") for period of three years from the closing of the private placement at an exercise price of $ 0.76. The Unit Shares will be held in escrow and released over a 27 month period from the date of closing of the private placement subject to certain exceptions.
The completion of the private placement is subject to the RSLFN Trust obtaining a minimum of $400,000 in funding for the purchase of the Units and certain other conditions typical for a transaction of this nature and the receipt of all necessary regulatory approvals including the approval of the TSX Venture Exchange. The private placement is scheduled to close on or about September 29, 2011. The Units and the Warrants issued under the private placement will be subject to a statutory hold period of four months and one day after the date of closing of the private placement.
Mega recognizes the value that local communities bring to project development. Having resources available in the immediate vicinity of a project provides many advantages and it is in Mega’s best interest to work with local communities in the development of such resources.
Mega Precious Metals Inc. is a well financed Canadian-based mineral exploration company with several projects in Northwestern Ontario, Manitoba and Nunavut. The Corporation is committed to an accelerated growth strategy and is backed by a team of experienced mining experts and a strong financial position. The Corporation is poised for rapid expansion through quick response to new opportunities and changes in the market. Mega’s common shares trade on the TSX Venture Exchange under the symbol MGP.
Forward-looking Information
Certain statements in this press release relating to the completion of the private placement and the use of proceeds from the private placement and the private placement is "forward-looking information" within the meaning of securities legislation. The Corporation does not intend, and does not assume any obligation, to update this forward-looking information. This forward-looking information represents management’s best judgment based on current facts and assumptions that management considers reasonable. The Corporation makes no representation that reasonable business people in possession of the same information would reach the same conclusions. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Readers should not place undue reliance on forward-looking information. More information about risks and uncertainties affecting the Corporation and its business is available in Mega Precious Metal’s filings which are posted on sedar at www.sedar.com.
Neither 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.
Shares Issued: 76,256,980