MEGA PRECIOUS METALS ANNOUNCES $7 MILLION BOUGHT DEAL FINANCING
Thunder Bay, Ontario
January 19, 2011 Shares Issued: 61,303,780
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.
Mega Precious Metals Inc. (MGP:TSX-V) (the "Company") announces that it has entered into an agreement with a syndicate of underwriters (the "Underwriters), led by Stonecap Securities Inc., whereby the Underwriters have agreed to purchase, on a bought deal basis, 8,750,000 flow-through common shares (the "Flow-Through Common Shares") from treasury of the Company at a price (the "Issue Price") of $0.80 per Flow-Through Common Share for gross proceeds of $7,000,000 (the "Offering").
The Company also grants the Underwriters an option to purchase up to an additional 15% of the Flow-Through Common Shares at the Issue Price exercisable for up to 30 days following Closing for additional gross proceeds of up to $1,050,000.
The gross proceeds from the sale of the Flow-Through Common Shares will be used for exploration at the Company's Canadian exploration properties.
The Offering will be made by way of a short-form prospectus to be filed in all provinces of Canada, except Quebec. The Offering is scheduled to close on or about February 16, 2011, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange and the securities regulatory authorities.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless an exemption from such registration is available.
Mega Precious Metals Inc. is a well financed Canadian-based mineral exploration company with several projects in Northwestern Ontario, Manitoba and Nunavut. The Company is committed to an accelerated growth strategy and is backed by a team of experienced mining experts and a strong financial position. The Company is poised for rapid expansion through quick response to new opportunities and changes in the market. Mega's common shares trade on the TSX Venture Exchange under the symbol MGP.
For further information and presentation material, please review the Mega website at www.megapmi.com
For further information, please contact:
Mega Precious Metals Inc.
Jim Rogers, President and Chief Executive Officer
O: 807-766-3380
TF: 877-592-3380
Forward-looking Statements
Certain statements in this press release relating to the Company’s exploration activities, project expenditures and business plans are "forward-looking statements" within the meaning of securities legislation. The Company does not intend, and does not assume any obligation, to update these forward-looking statements. These forward-looking statements represent management’s best judgment based on current facts and assumptions that management considers reasonable. The Company makes no representation that reasonable business people in possession of the same information would reach the same conclusions. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. In particular, fluctuations in the price of gold or in currency markets could prevent the Company from achieving its targets. Readers should not place undue reliance on forward-looking statements. More information about risks and uncertainties affecting the Company and its business is available in Mega Precious Metal’s filings which are posted on sedar at www.sedar.com.
There is no guarantee that drill results reported in this news release will lead to the identification of a deposit that can be mined economically, and further work is required to identify a reserve or resource.
Neither 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 release.
