Electrum Strategic Metals acquires units of Mantra Mining

    NEW YORK, May 20 /CNW/ - Electrum Strategic Metals LLC ("Electrum")
announced that it has acquired ownership of 7,714,286 units (the "Units") of
Mantra Mining Inc. ("Mantra") for the aggregate purchase price of
$2,700,000.10, representing a subscription price of $0.35 per Unit. Each Unit
consists of one common share in the capital of the Mantra (collectively, the
"Shares") and one common share purchase warrant (collectively, the "Warrants")
entitling the holder(s) thereof to purchase one additional Share (a "Warrant
Share") in the capital of the Mantra at an exercise price of $0.50 per Warrant
Share. The Warrants contain a restriction on exercise to the extent the
exercise would bring the holdings of Electrum and its affiliates and joint
actors to more than 19.99% of the issued and outstanding Shares. Mantra has
agreed to seek shareholder approval to remove such exercise restrictions. In
the event shareholder approval is not obtained on or before September 30,
2009, the term of the Warrants will be extended from three years to five years
and the Warrants would become transferable, subject to applicable laws.
    As a result of the acquisition noted above, Electrum owns 7,714,286
Shares, representing approximately 11.3% of the issued and outstanding Shares,
and owns 7,714,286 Warrants, representing 50% of the Warrants.
    Electrum may be considered a joint actor with Cougar Gold LLC ("Cougar")
by virtue of Electrum holding a substantial indirect interest in Cougar and
the manager of Electrum being a director of Cougar's 100% owner. Cougar is the
party with which Mantra entered into an agreement to acquire an interest in
Golden Lynx LLC, as announced by Mantra on May 1, 2009. As consideration for
the interest in Golden Lynx LLC acquired by Mantra, Mantra issued Cougar
4,200,000 Shares on May 20, 2009.
    As a result of Electrum's acquisition noted above, Electrum's
relationship with Cougar and the holding of the Shares by Cougar, Electrum and
a party that may be considered a joint actor with Electrum own 11,914,286
Shares, representing approximately 17.4% of the issued and outstanding Shares,
and Electrum owns 7,714,286 Warrants, representing 50% of the Warrants.
    The Units and the Shares issued to both Electrum and to Cougar referred
to above were acquired from Mantra and were acquired for investment purposes.
Electrum and Cougar and/or one or more of their respective affiliates may,
depending on market and other conditions, increase or decrease their
beneficial ownership of Shares or other securities of the Mantra whether in
the open market, by privately negotiated agreement or otherwise.

For further information:

For further information: Electrum Strategic Metals LLC is located at
1370 Avenue of the Americas, 19th Floor, New York, New York 10019.

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890