Magna Resources Ltd. (the Company)(MNA:CSE, MGRZF:OTCQX) is pleased to announce the closing of a non-brokered private placement (the Private Placement) for 266, 666 Units (Units) at a price of $0.15 per Unit to raise total proceeds of $39, 999.90. Each Unit is comprised of one common share of the Issuer (a Share) and one-half of one common share purchase warrant of the Issuer (each whole warrant, a Warrant). Each Warrant will be exercisable into a common share of the Company (a Warrant Share) for a period of 24 months from the date of issuance at an exercise price of $0.25 per Warrant Share.
The Units were purchased by Mr. John Greig, a director of the Company.
Shares issued pursuant to this Private Placement are subject to a four-month hold period from the closing date in accordance with applicable securities laws and, if required the policies of the Exchange.
The proceeds of this Private Placement are for the Companys general working capital as well as preparatory work for the Phase 1 drill program at the Companys Green River Potash Project in the renowned Paradox Basin, Utah.
About the Company
Magna Resources Ltd. is dedicated to the acquisition and development of potash mineral deposits in the USA and elsewhere. The Company, through a wholly owned subsidiary, American Potash LLC, a Nevada limited liability corporation, holds certain State potash leases and approval of certain federal potash prospecting permits in the State of Utah that constitute the Green River Potash Project, host to a significant potash Exploration Target.
On behalf of the Board of Directors
Mike Sieb, President
Rudy De Jonge, CEO
Neither the OTCQX nor the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
Statements in this press release other than purely historical information, including statements relating to the Companys future plans and objectives or expected results, are “Forward-Looking Statements” within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended and Canadian securities laws. Forward Looking Statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Companys business, including risks inherent in resource exploration and development. As a result, actual results may vary materially from those described in the Forward Looking Statements.
Key assumptions upon which the Companys forward-looking statements and information are based include: the price of potash will rise and not fall significantly; the Companys ability to secure new financing to continue its exploration and development activities; there being no significant changes in the ability of the Company to comply with environmental, safety and other regulatory requirements; the Companys ability to obtain regulatory approvals in a timely manner; and the Companys ability to achieve its growth strategy. These assumptions should be considered carefully by readers. Readers are further cautioned that the foregoing list of assumptions is not exhaustive. Although the Company believes that the assumptions on which the forward-looking statements or information are made are reasonable, based on the information available to the Company on the date such statements were made, no assurances can be given as to whether these assumptions will prove to be correct.