TORONTO,
ONTARIO--(Marketwire - April 1, 2010) -
THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE
SERVICES NOR FOR DISSEMINATION IN THE UNITED STATES.
MetalCORP Limited (TSX VENTURE:MTC) is pleased to announce that it
successfully completed the first tranche of its previously announced
$1,400,000 private placement (the "Private Placement") (see
Metalcorp's news release dated March 29, 2010). An aggregate of
5,000,000 units ("Units") were sold today to funds of the
MineralFields Group at $0.20 per Unit for gross proceeds of $1,000,000.00.
Each Unit is comprised of one flow-through common share and one-half of
a transferable flow-through common share purchase warrant. Each whole
warrant (a "Unit Warrant") entitles the holder to purchase
one non-flow-through common share at any time for a period of two
years, at a price of $0.35 in the first year and $0.45 in the second
year.
A finder received as compensation 6.5% cash commission and 325,000
finder's warrants, being 6.5% of the aggregate number of Units
purchased. Each finder's warrant entitles the holder to purchase for a
period of two years one finder's unit comprised of one non-flow through
common share and one-half of one non-flow-through warrant (on the same
terms as the Unit Warrant) at $0.20 per each such finder's unit.
The gross proceeds to MetalCORP from the Private Placement will be used
to fund exploration expenses which qualify as "Canadian
Exploration Expenses" (within the meaning of the Income Tax Act
(Canada)) in connection with MetalCORP's projects in Ontario, including
its Pickle Lake and Red lake (Black Bear) gold properties, and projects
at its Hemlo East gold property.
All the securities issued pursuant to this first tranche are subject to
a four (4) month hold period.
"We are very pleased to continue our relationship with
MineralFields Group", said Naomi Nemeth, President and CEO of
MetalCORP. "This is an important milestone in the growth of
MetalCORP Limited and we look forward to working with MineralFields
Group as we develop our holdings in the Hemlo East and Pickle Lake
regions."
About MetalCORP Limited
MetalCORP Limited is a mineral exploration company based in Thunder
Bay, Ontario with gold and base metal projects in the Canadian Shield
of Northern Ontario, Canada, one of the most prolific mineral districts
in the world. The projects, with a total area of more than 85,000
acres, include the Hemlo East, Dorset, Pickle Lake, Black Bear and
Keezhik Lake gold properties, the Big Lake copper-zinc-silver-gold
property, and the North Rock copper-nickel-platinum property. Following
the closing of this Private Placement, MetalCORP has 61,349,471 common
shares outstanding and approximately $2,000,000 in cash and no
long-term debt. To find out more about MetalCORP visit our website at www.metalcorp.ca.
About MineralFields, Pathway and First Canadian Securities(R)
MineralFields Group (a division of Pathway Asset Management), based in
Toronto, Vancouver and Calgary, is a mining fund with significant
assets under administration that offers its tax-advantaged super
flow-through limited partnerships to investors throughout Canada as
well as hard-dollar resource limited partnerships to investors
throughout the world. Pathway Asset Management also specializes in the
manufacturing and distribution of structured products and mutual funds
(including the Pathway Multi Series Funds Inc. corporate-class mutual
fund series). Information about MineralFields Group is available at www.mineralfields.com.
First Canadian Securities(R) is active in leading resource financings
(both flow-through and hard dollar PIPE financings) on competitive,
effective and service-friendly terms, and offers investment banking,
mergers and acquisitions, and mining industry consulting, services to
resource companies. MineralFields and Pathway have financed several
hundred mining and oil and gas exploration companies to date through
First Canadian Securities(R).
This press release shall not constitute an offer to sell or
solicitation of an offer to buy the securities in any jurisdiction. The
common shares and the Warrants comprising the Units or issuable upon
exercise of the Warrants and finder's warrants will not be and have not
been registered under the United States Securities Act of 1933 and may
not be offered or sold in the United States absent an applicable
exemption from the registration requirements.
This Press Release contains forward-looking statements, including the
size and pricing of the Private Placement that may involve a number of
risks and uncertainties, including market conditions. Actual events or
results could differ materially from MetalCORP's forward-looking
statements and expectations herein.
Except for statements of historical fact contained herein, the
information in this press release may constitute "forward-looking
information" within the meaning of Canadian securities law. Other
than statements of historical fact, all statements are
"Forward-Looking Statements", including the size and pricing
of the Offering, that involve various known and unknown risk and
uncertainties and other factors, such as market conditions. There can
be no assurance that such statements will prove accurate. Results and
future events could differ materially from those anticipated in such
statements. Readers of this press release are cautioned not to place
undue reliance on these "Forward-Looking Statements". Except
as otherwise required by applicable securities statutes or regulation,
MetalCORP expressly disclaims any intent or obligation to update
publicly forward-looking information, whether as a result of new
information, future events or otherwise.
Neither IIROC nor the TSX Venture Exchange accepts responsibility for
the adequacy or accuracy of this release.
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