MGX Minerals Inc (CSE:XMG, OTCQB:MGXMF) is set to raise C$7.5mln via private placings to develop its Canadian projects and its magnesium and lithium interests.
The group intends to complete a non-brokered non-flow-through placing to raise gross proceeds of up to C$5mln and, at the same time, a non-brokered flow-through placing to raise gross proceeds of C$2.5mln.
The non-flow through financing consists of an offering of up to 5mln units, with each unit priced at $1 and consisting of one company share and one share purchase warrant.
Each warrant will entitle the holder to acquire one company share for 36 months from the date of closing at an exercise price of C$1.15 each.
The flow through financing will consist of an offering of up to 2.38mln units, with each unit priced at C$1.05.
Each flow through warrant will entitle the holder to acquire one further share on a non-flow-through basis, for 36 months at C$1.15 each.
The closing of the financings is expected to take place on or around the week beginning December 4 this year.
The proceeds of the flow-through financing will be used for mineral exploration expenses on the firm's Canada projects.
The non-flow through financing proceeds are expected to be used to advance the lithium and magnesium assets, including continued investment into extraction equipment and PurLucid, property payments and additional acquisitions, engineering studies, permitting activities, and general working capital.