MISTANGO
CLOSES NON-BROKERED PRIVATE PLACEMENT OF UNITS
Mistango River Resources Inc. (CNSX: MIS) (?Mistango?)
reports that it has closed its previously announced non-brokered private
placement pursuant to which it has issued 6,200,000 units of securities (each,
a ?Unit?) issued on a ?flow-through? basis at a
price of $0.25 per Unit for gross proceeds of $1,550,000 (the ?Offering?).
Each Unit comprises one Class A Voting Common Share of the Corporation and one
half of one Class A Voting Common Share purchase warrant of the Corporation
(each whole Common Share purchase warrant, a ?Warrant?),
with each Warrant being exercisable to acquire one Class A Voting Common Share
(each, a ?Warrant Share?) at an exercise price of $0.35 per Warrant
Share for a period of two years after the Closing Date. In addition, in connection
with the Offering, the Corporation issued an additional 600,000 Units (the ?Additional Units?) for additional
proceeds of $150,000, on a non-flow-through basis, to Queenston
Mining Inc. in connection with its existing right to maintain its equity position
in Mistango.
In
connection with the Offering, the Corporation paid to Primary Capital Inc. (the
?Finder?) a finder?s fee of $91,750 in cash in
respect of the sale of Units (other than the Additional Units) to subscribers
introduced to the Company by the Finder. As additional compensation the
Corporation issued to the Finder 367,000 non-transferable compensation options
(each a ?Compensation Option?).
Each Compensation Option entitles the holder thereof to acquire one unit of
securities of the Company (each, a ?Finder?s Unit?) at a price of $0.25 per Finder?s Unit for a period of two years after the date
hereof. Each Finder?s
Unit comprises one Common Share and one-half of one Warrant.
All
securities issued in this Offering are subject to a statutory four (4) month
hold period expiring on February 14, 2012.
The gross
proceeds from the sale of the Units will be used to incur Canadian Exploration
Expenses for the purposes of the Income Tax Act (Canada) on Mistango?s
Omega gold property. Such Canadian Exploration Expenses will be renounced
with an effective date of no later than December 31, 2011. Proceeds from the
Additional Units will be used for general corporate purposes and for
exploration activities.
Mistango
is a Canadian-based junior mining and exploration company focused on existing
projects in Ontario and Quebec. For additional information about Mistango and its mining properties, please visit Mistango?s regulatory filings at
www.sedar.com or at www.cnsx.ca.