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Mexican Gold Announces Closing of $4 Million Non-Brokered Private Placement

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Mexican Gold Corp.  (TSX-V: MEX) is pleased to announce that it has closed its previously announced non-brokered private placement comprised of 50,000,000 units of the Company at an issue price of $0.08 per Unit for aggregate gross proceeds of $4,000,000.


Each Unit consists of one common share in the capital of the Company  and one transferable Common Share purchase warrant, with each Warrant entitling the holder thereof to acquire an additional Common Share at an exercise price of $0.12 per Common Share for a period of five years, expiring July 15, 2024.  All securities to be issued in connection with the private placement will be subject to a hold period expiring November 16, 2019.


The TSX Venture Exchange has granted conditional approval for the listing of the Warrants, subject to satisfaction of certain conditions precedent including expiry of applicable Canadian hold periods.


The net proceeds of the private placement will be used for exploration and advancement of the Company’s Las Minas Project, payment of outstanding invoices, and general working capital.  No finder’s fees were paid in connection with the Offering.


1198578 B.C. Ltd, acquired directly, 11,875,000 Common Shares and 11,875,000 Warrants pursuant to the Offering for total consideration of $950,000.  Prior to the Offering, BC Co did not own or control any Common Shares of the Company.  Following completion of the Offering, BC Co now owns and controls an aggregate 11,875,000 Common Shares of the Company representing approximately 11.5% of the outstanding Common Shares of the Company (or 23,750,000 representing approximately 15.5% of the outstanding Common Shares of the Company on a fully diluted basis). The Company has been advised that BC Co acquired these securities for investment purposes and may, depending on market and other conditions, or as future circumstances may dictate, from time to time, increase or dispose of some or all of the existing or additional securities it holds or will hold, or may continue to hold its current position.  In connection with the acquisition of Units, BC Co will file an early warning report in accordance with National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Issues.  To obtain a copy of the early warning report directly from BC Co, please contact Michael Kanevsky at 604-780-9997.


Directors and insiders of the Company subscribed for a total of 7,275,000 Units under the Offering.  The issuance of these securities to directors and insiders are “related party transactions” under the policies of the Exchange and Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions. The Company is relying on exemptions from the minority shareholder approval and formal valuation requirements applicable to the related party transactions under Sections 5.7(b) and 5.5(b), respectively, of MI 61-101.  There has been no prior formal valuation of the common shares and share purchase warrants issued as there has not been any necessity to do so.  The Offering has been reviewed and approved by the Company’s board of directors, including a majority of the Company’s independent directors.


About Mexican Gold Corp.


Mexican Gold Corp. is a Canadian based mineral exploration and development company committed to building long-term value through ongoing discoveries and strategic acquisitions of prospective precious metals and copper projects in the Americas. Mexican Gold is exploring the Las Minas Project, which is located in the core of the Las Minas mining district in Veracruz State, Mexico, and is host to one of the newest, under-explored skarn systems known in Mexico.


Posted July 16, 2019

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