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Meguma Gold closes $1-million private placement

November 22, 2017

Meguma Gold has closed a non-brokered private placement and issued 11,111,112 units at a subscription price of nine cents per unit for gross proceeds of $1-million. Each unit consists of one common share of the company and one share purchase warrant. Each warrant entitles the holder to acquire one additional common share of the company at a price of 13 cents for a period of two years following the issuance date of the warrant.

A finder’s fee of 888,888 units was paid in connection with this private placement. Each finder unit consists of one common share and one-half of a share purchase warrant, with one whole warrant exercisable into one common share at an exercise price of 13 cents for a period for two years.

All the units and the warrants are subject to a statutory hold period of four months and one day from the issuance date thereof.

The company intends to use the proceeds from the private placement on exploration and for general working capital purposes.
Further to the news release dated Nov. 10, 2017, the company wishes to clarify the consideration paid under the Tay-LP option agreement.

In consideration of the Tay-LP option agreement, Meguma has agreed to pay $10,000 to Long and Associates as well as 150,000 Coronet common shares. Further consideration consists of cash payment of $10,000 by Feb. 3, 2018, and a further $30,000 on or before Dec. 30, 2018, and further cash payments of $60,000 on or before Dec. 30, 2019; $80,000 on or before Dec. 30, 2020; and $160,000 on or before Dec. 30, 2021. Work commitments are $150,000 in 2018, $250,000 in 2019, $500,000 in 2020 and $1-million in 2021. The optionor will retain a 2-per-cent net smelter return upon completion of the terms to acquire 100 per cent of the property, with a preproduction royalty of $20,000 per year paid on or before Dec. 30 of each year. This is repayable to the optionee upon commencement of production and sale of product. In the event the option is cancelled, at any time, the optionee must insure all claims will have at least one year of assessment work or will pay cash in lieu to the optionor.

Finders’ fees will be paid in connection with the mineral property option agreement, subject to regulatory regulations.

 

About Meguma Gold
Meguma Gold is engaged in the business of acquiring, exploring and developing natural resource properties, with a focus on precious mineral properties/projects which have the potential for both near-term cash flow and significant exploration upside potential. Meguma’s White Caps gold project is near the town of Manhattan in Northern Nye county.