Mammoth Capital Corp. Announces Private Placement
03.11.2011 | Marketwired
VANCOUVER, BRITISH COLUMBIA -- (Marketwire - Nov. 3, 2011) - Mammoth Capital Corp. (TSX VENTURE:MTH.P) ("Company") is pleased to announce that is has engaged PI Financial Corp. ("Agent") to conduct a private placement on a commercially reasonable efforts basis of up to 3,000,000 units ("Units") at a price of $0.25 per Unit for gross proceeds of up to $750,000 ("Offering"). Each Unit will consist of one common share of the Company ("Share") and one transferable warrant (a "Warrant"), with each Warrant entitling the holder to purchase one additional Share at a price of $0.40 for a period of two years following the closing date.In connection with the Offering, the Agent will receive a commission equal to 8.0% of the gross proceeds raised in the Offering payable in cash and compensation options exercisable for a number of Shares as is equal to 10% of the total number of Shares sold under the Offering. Each option is exercisable at a price of $0.25 for a period of two years following the closing date. The Agent will also receive a corporate finance fee and be reimbursed for reasonable expenses incurred in connection with the Offering.
The net proceeds of the Offering will be used to make payments under the Company's option agreement with Yale Resources Ltd. pursuant to which the Company can earn a 100% interest in the Urique Project in Northern Mexico, to carry out recommended work programs on the Urique Project and for general and working capital requirements.
The Offering is subject to TSX Venture Exchange approval and the securities issued pursuant to the private placement will be subject to a four-month hold period. The Offering is to close concurrently with the completion of the Company's previously announced qualifying transaction.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contact
Mammoth Capital Corp.
Nigel Kirkwood
604 684-4743
