TSX VENTURE SYMBOL "MC"
CALGARY, June 6 /CNW/ - MILL CITY GOLD CORP. ("Mill City" and/or the
"Company) has closed its previously announced non-brokered private placement
of flow-through (FT) and non flow-through (NFT) units to raise gross proceeds
of $1.5 million. In connection with the financing, Mill City issued a total of
3.75 million FT units and 3.75 million NFT units. Each FT unit was issued at a
price of 20 cents per unit and consisted of one common flow-through share of
Mill City and one-half of one common share purchase warrant, each whole such
warrant entitling the holder thereof to acquire one additional common share of
Mill City (which shall not be a flow-through share) for a period of 24 months
at a price of 40 cents per share. Each NFT unit was issued at a price of
20 cents per unit and consisted of one common share of Mill City and one share
purchase warrant entitling the holder thereof to acquire one additional common
share of Mill City for a period of 24 months at an exercise price of 40 cents
per share. The warrants contain an "accelerated expiry provision", whereby, in
the event that the closing price of the Company's listed shares exceeds
60 cents for a period of 20 consecutive trading days, the Company may give
written notice to holders of the warrants that the warrants shall expire on
the 20th day from the date of the notice. All securities issued in connection
with the private placement are subject to a statutory hold period expiring
October 6, 2008.
Proceeds of the financing will be used to finance the Company's
continuing exploration program in the McFaulds Lake area, James Bay Lowlands,
Northern Ontario, and for general corporate purposes.
Pinetree Capital Ltd., Northfield Capital Corp., William O. Ballard,
President of Orion Capital Inc. and Donald M. Ross, President of Jones, Gable
& Company Limited purchased substantially all of the private placement.
ON BEHALF OF THE BOARD OF DIRECTORS
"James R. Brown"
James R. Brown
Chairman, President & CEO
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this Release.
For further information:
For further information: James R. Brown at (403) 640-0110 or visit the
Company's website at www.millcitygold.com