TORONTO, Dec. 9, 2019 /CNW/ - Mistango River Resources Inc. (CSE: MIS, "Mistango" or the "Company") is pleased to announce it has closed its $500,000 non-brokered financing as announced in its November 4, 2019 news release.
"Leadership is the most important factor in any business. While the corporation of Mistango has been around for decades, this financing marks a brand new era of leadership for the company. Our team, who purchased over 18% of this financing, will position Mistango and its assets so that its true value is reflected in its market capitalization. Mistango owns 100% of the Omega Gold Project, a high-quality and coveted gold resource located directly on the Cadillac-Larder Lake Break near Kirkland Lake. Our team sees excellent potential for resource expansion on this asset, which is already strategic to numerous mining companies and synergistic to numerous gold projects in the area. We are looking forward to 2020," said Stephen Stewart, a director of Mistango.
Mistango's New Board of Directors, installed on October 21, 2019 collectively purchased over 18% of this financing. Mistango issued 16,666,667 units consisting of one common share of Mistango and one-half share purchase warrant, with each whole warrant exercisable for up to 2 years after closing at an exercise price of $0.05 for one common share of Mistango. All common shares to be issued pursuant to the Private Placement are subject to a statutory four month and one day hold period.
Under the Private Placement, insiders of the Company have purchased a total of 8,200,000 shares. Their participation is considered to be a "related party transaction" as defined under Multilateral Instrument 61-101 ("MI 61-101"). The transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the securities to be distributed in the Private Placement nor the consideration to be received for those securities, in so far as the Private Placement involves the insiders, exceeds 25% of the Company's market capitalization.
The Company did not file a material change report more than 21 days before the expected closing of the private placement as the details of the private placement and the participation therein by related parties of the Company were not settled until shortly prior to closing and the Company wished to close on an expedited basis for sound business reasons and in a timeframe consistent with usual market practices for transactions of this nature.
Mistango is a Canadian-based exploration and development company focusing on its Omega Mine project near Kirkland Lake, Ontario.
SOURCE Mistango River Resources Inc.
For further information: To Speak to Mistango directly, please contact: Stephen Stewart, Director, Phone: 416.644.1567, Email: [email protected], www.Mistango.com