In connection with this closing, the Company issued (i) 19,495,184 units (“Hard Units”) at a price of
The Company also paid cash finder fees to
Proceeds from the Offering will be used for continued exploration and general corporate purposes. An amount equal to the gross proceeds from the sale of the FT Shares will be used for expenditures which qualify as Canadian exploration expenses (“CEE”) and “flow-through mining expenditures” (within the meaning of the Income Tax Act (
The Hard Units and FT Shares issued under the Offering shall be subject to a restrictive hold period of four months and one day from the date of issuance. The Company has received conditional acceptance of the Offering from the
Insiders and strategic shareholders invested approximately 70% of the funds raised in this closing. Following this closing, Manitou has approximately
Certain officers of the Company acquired a total of six million Hard Units. Accordingly, the Offering is a “related party transaction” under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company relied on the exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in Sections 5.5(b) and 5.7(1)(a) of MI 61-101 in respect of related party participation in the Offering as the Company is listed on the TSXV and neither the fair market value (as determined under MI 61-101) of the subject matter of, nor the fair market value of the consideration for, the transaction, insofar as it involves the related parties, exceeded 25% of the Company's market capitalization (as determined under MI 61-101). The Company will file a material change report in respect of the Offering. However, it will be filed less than 21 days in advance of this closing, which is consistent with market practice and the Company deems reasonable in the circumstances given that no conditions to closing remain unsatisfied that would have required the closing to have been delayed for such period.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in
For further information on
Telephone: 1 (705) 698-1962
Email: info@manitougold.com
Neither
Forward Looking Statements – Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks, assumptions and uncertainties. These forward-looking statements are subject to numerous risks, assumptions and uncertainties, certain of which are beyond the control of Manitou, including with respect to the receipt of the final approval of the Offering and the use of proceeds of the Offering. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
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