/Not for distribution to United States Newswire Services or for
dissemination in the United States/
TORONTO, Feb. 29, 2012 /CNW/ - Merc International Minerals Inc. ("Merc") (TSXV: MRK) is pleased to announce that it has entered into an
agreement in connection with a private placement offering of up to
15,000,000 flow through shares ("FT Shares") at a price of $0.40 per FT Share and up to 18,182,000 units ("Units") at a price of $0.33 per Unit for aggregate gross proceeds of up to
$12,000,060 (the "Offering"). Each FT share shall consist of one common share of Merc, which will
qualify as a "flow-through share" within the meaning of the Income Tax Act (Canada). Each Unit shall be comprised of one common share and
one-half of one common share purchase warrant (each whole common share
purchase warrant, a "Warrant"). Each Warrant shall entitle the holder thereof to acquire one common
share of the Merc at a price of $0.50 for a period of 18 months,
subject to acceleration in certain circumstances, following the closing
of the Offering.
A syndicate of agents, led by Fraser Mackenzie Limited and including
Jones, Gable and Company Limited, Bellotti Goodman Capital Inc.,
Cormark Securities Inc., and PowerOne Capital Markets Limited
(collectively, the "Agents"), have agreed to act on a best efforts agency basis with respect to
the Offering. Merc has agreed to pay the Agents a commission equal to
6.0% of the aggregate gross proceeds of the Offering and issue the
Agents broker warrants (the "Broker Warrants") exercisable in the aggregate for that number of common shares of Merc
equal in number to 6.0% of the number of FT Shares and Units sold under
the Offering. The Broker Warrants will be exercisable at a price of
$0.40 per common share for a period of 18 months after the closing date
of the Offering.
The Agents shall also have an option exercisable not later than 48 hours
prior to the closing date of the Offering to sell additional FT Shares
and/or Units for aggregate proceeds of up to an additional $1,800,000.
The proceeds from the sale of the FT Shares will be used for exploration
for Merc's properties and the proceeds from the sale of the Units will
be used for general working capital purposes. The Offering is scheduled
to close on or about March 21, 2012 and is subject to certain
conditions including, but not limited to, the receipt of all necessary
approvals including the acceptance by the TSX Venture Exchange.
Any securities to be issued will be subject to a hold period of four
months and a day from the closing date of the Offering in accordance
with the rules and policies of the TSX Venture Exchange and applicable
Canadian securities laws and such other further restrictions as may
apply under foreign securities laws.
Merc International Minerals Inc.
Merc is a Canadian-based exploration company focused on acquiring and
developing gold mineral properties in the NWT. Its primary land
position covers 234,013 acres or 94,701 hectares in the Indin Lake Gold
Camp, located approximately 220 kilometres north of Yellowknife, NWT
and includes an NI 43-101 Inferred Mineral Resource totalling 1.446
million oz Au with an average grade of 1.05 g/t Au using a block
cut-off grade of 0.6 g/t Au.
The technical aspects of this press release have been reviewed by
Michael Byron, Ph.D., P.Geol., Chief Geologist and Director for Merc,
who is the "Qualified Person" as defined by NI 43-101 for this project.
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 news
This news release contains "forward-looking information" within the
meaning of applicable Canadian securities legislation. Forward-looking
information includes, but is not limited to, information with respect
to the completion of the Offering, TSX Venture Exchange acceptance and
use of proceeds. Generally, forward-looking information can be
identified by the use of forward-looking terminology such as "plans",
"expects", or "does not expect", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates", or "does not
anticipate", or "believes" or variations of such words and phrases or
state that certain actions, events or results "may", "could", "would",
"might", or "will be taken", "occur", or "be achieved". Forward-looking
information is based on the opinions and estimates of management at the
date the information is made, and is based on a number of assumptions
and is subject to known and unknown risks, uncertainties and other
factors that may cause the actual results, level of activity,
performance or achievements of Merc to be materially different from
those expressed or implied by such forward-looking information,
including risks associated with the exploration, development and mining
such as economic factors as they effect exploration, future commodity
prices, changes in foreign exchange and interest rates, actual results
of current exploration activities, government regulation, political or
economic developments, environmental risks, permitting timelines,
capital expenditures, operating or technical difficulties in connection
with development activities, employee relations, the speculative nature
of gold exploration and development, including the risks of diminishing
quantities of grades of reserves, contests over title to properties,
and changes in project parameters as plans continue to be refined as
well as those risk factors discussed in Merc's management discussion
and analysis for the year ended July 31, 2011, available on www.sedar.com. Although Merc has attempted to identify important factors that could
cause actual results to differ materially from those contained in
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can be
no assurance that such information will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such information. Accordingly, readers should not place
undue reliance on forward-looking information. Merc does not undertake
to update any forward-looking information, except in accordance with
applicable securities laws.
SOURCE Merc International Minerals Inc.
For further information:
David Wiley, President and CEO
Merc International Minerals Inc.
(416) 363-4567 (FAX)
Daniel Boase, Investor Relations
First Canadian Capital Corp.
(416) 742-5600 ext 232