MILL CITY ANNOUNCES $1.5 MILLION FINANCING
TSX VENTURE SYMBOL "MC"
CALGARY, Oct 4 /CNW/ - MILL CITY GOLD CORP. (the "Company" or "Mill City") announced today that it has entered into an agreement with Primary Capital Inc. as lead agent on behalf of a syndicate of agents (collectively the "Agents") whereby the Agents have agreed to purchase a combination of hard dollar units ("Hard Dollar Units") and flow-through shares ("Flow- Through Shares") for aggregate gross proceeds of $1,500,000 on an agency best efforts basis.
Each Hard Dollar Unit is priced at $0.10 and will consist of one common share and one half warrant. Each full warrant will entitle the holder to purchase one additional common share of the Company at a price of $0.15 for a period of 24 months from the date of closing. Each Flow-Through Share is priced at $0.10.
The Company will pay the Agents a cash commission equal to 6% of the gross proceeds and issue broker warrants to the Agents to acquire that number of Hard Dollar Units that is equal to 10% of the offered securities sold at an exercise price of $0.10 per Hard Dollar Unit at any time on or before the date which is 24 months after the Closing Date. The financing is scheduled to close on or about October 13, 2010 and is subject to the approval of the TSX Venture Exchange.
The proceeds of the financing will be used to advance exploration on the Croxall property located in the West Timmins Gold District and for general working capital purposes.
The Company also announces that Robert D. Cudney has retired from the Board. We wish to thank Rob for his tremendous contribution and support over the years and wish him success in his ongoing endeavours.
Details of Mill City's projects are available on the Company's website at www.millcitygold.com.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this Release.
For further information:
MILL CITY GOLD CORP.
James R. Brown, President & CEO
Tel: (403) 640-0110
E-mail: [email protected]
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