Melkior Resources Inc. ("Melkior") (TSX VENTURE: MKR) is pleased to announce that it has completed a non-brokered private placement of 6,200,000 flow units and 3,200,000 non-flow through units at a price of $0.055 per flow through unit and a price of $0.05 per non-flow through units for gross proceeds of $501,000. Each flow through unit is comprised of one flow through common share and one non-flow through common share purchase warrant. Each warrant entitles its holder to purchase one additional common share at a price of $0.10 for a period of 24 months following the closing. Each non-flow through unit is comprised of one common share and one common share purchase warrant. Each warrant entitles its holder to purchase one additional common share at a price of $0.07 for a period of 24 months following the closing.
The funds raised will be used for a drill program will on the Carscallen Gold Project in Timmins, Ontario that adjoins Lakeshore Gold as well as general working capital requirements for the Company. The drill program will concentrate and extend on a zone that requires winter drilling, which was identified in the previous drilling (NR2016-21-01). Holes to be followed up including 95.8 g/t gold 2.0 metres (NR 2012-04-12 and 3.19 g/t 12.4 metres (NR 2010-12-20).
In connection with the Offering, Melkior has paid finders' fee of $44,700 as well as transaction fees of $10,000 in cash as well as and issued 840,000 broker warrants in relation to this private placement. 290,000 broker warrant entitles the holder to purchase a common share at a price of $0.07 per share for a period of 24 months following the Closing. 550,000 broker warrant entitles the holder to purchase a common share at a price of $0.10 per share for a period of 24 months following the Closing.
In accordance with securities legislation currently in effect in Canada, the Shares, the Warrants and the Warrant Shares will be subject to a "hold period" of four months plus one day from the date of closing of the private placement.
The Offering is subject to regulatory approval.
Melkior is a junior company with active exploration projects in Timmins and holds other exploration properties including its 90% owned Launay gold property in West Quebec. Melkior also holds a 49% of the Kenty Lake copper/nickel/platinum property with Glencore Xstrata holding the remaining 51%.
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.