Mag Copper Limited announced that it has completed a non-brokered private placement for gross proceeds of USD 100,000 through the issuance of 5,000,000 flow-through common shares of the Company at a price of USD 0.02 per Flow Through Share.
The Company will use the proceeds of the offering for exploration and development work on its Fabie Bay and Magusi mineral properties.
Pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions the private placement constitutes a "related party transaction" as an insider of the Company subscribed for 1,250,000 Flow-Through Shares in the private placement. The Company is relying on exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 based on the fair market value of insider participation not exceeding 25% of the Company's market capitalization, and the fact that the common shares of the Company are listed on the CNSX and the Company is currently experiencing financial hardship.
A material change report in connection with the private placement will be filed less than 21 days before the closing of the private placement. This shorter period is reasonable and necessary in the circumstances as the Company wished to complete the private placement in a timely manner and required the funds to satisfy existing flow-through contractual obligations.