Manitou Gold (TSXV:MTU) to raise $5M in private placement

• Mining company, Manitou Gold (MTU) is planning to complete a non-brokered private placement to raise up to C$5 million
• The offering will consist of hard units at six cents each, and flow-through common shares at nine cents per share
• Manitou Gold expects that participation from company insiders will not exceed ten per cent of the offering
• Proceeds from the placement will go towards continuing company exploration activities and general corporate purposes
• Manitou Gold (MTU) is down 16.67 per cent and is currently trading at five cents per share

Mining company, Manitou Gold (MTU) is planning to complete a non-brokered private placement, to raise up to C$5 million.

The company’s offering will produce aggregate proceeds, from the combined placement of hard units and flow-through common shares. 

Hard units, at six cents per unit, will consist of one common share in Manitou Gold, and one share purchase warrant. Each warrant will entitle the holder to buy one more common share in the company, at an exercise price of $0.12 each. The warrants can be exercised within two years of the private placement’s closing date.

The placement’s flow-through common shares will cost nine cents per FT share. 

Proceeds from the placement will go towards continuing Manitou’s exploration activities and general corporate purposes. In addition, an equal amount to the proceeds raised through the sale of FT shares will be used for expenditures which qualify as Canadian exploration expenses and “flow-through mining expenditures”. 

Manitou has agreed to pay the eligible finders who assist in the placement a cash fee equal to seven per cent of the gross proceeds raised by those finders. In addition, the company will also pay them a number of broker warrants which is equal to seven per cent of hard units and FT shares sold by those finders.

The number of broker warrants does not include those sold to President’s List subscribers. Each broker warrant will allow its holder to acquire one hard unit, at an exercise price of six cents each, within two years of the warrant’s issuance date.

Insiders of Manitou may participate in the placement, although the company does not expect this participation to exceed ten per cent of the offering. This may change, however, if insiders with participation right exercise their rights to maintain pro rata interests in the company.

Manitou Gold (MTU) is down 16.67 per cent and is currently trading at five cents per share at 1:23pm EDT.