MEADOW BAY GOLD CLOSES PRIVATE PLACEMENT

By on Mar 7, 2016 in News |

Vancouver, BC – March 7, 2016 Meadow Bay Gold Corporation (“Meadow Bay Gold” or the “Company”) (TSX: MAY) (OTCQB: MAYGF) (Frankfurt: 20M, WKN A1C3DN) announces the closing of a non-brokered private placement financing (the “Private Placement”) consisting of the sale of 5,080,000 units (“Units”) at a price of $0.05 per Unit, raising gross proceeds of $254,000. Each Unit consists of one common share of the Company and one warrant (a “Warrant”) exercisable to purchase an additional common share of the Company at a price of $0.06 per share for a period of five years.

Christopher Crupi, the President, Chief Executive Officer and a director of the Company, subscribed for 1,750,000 Units for a subscription price of $87,500, which amount is less than 25% of the Company’s market capitalization. As such, the Company has relied upon exemptions from the valuation and minority shareholder approval requirements contained in sections 5.5(a) and 5.7(1)(a) of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions. The Company completed the Private Placement prior to filing a material change report as a result of working capital requirements.

The Company paid a finder’s fee to Canaccord Genuity Corp. equal to 7% in cash and 128,100 finder’s warrants (“Finder’s Warrants”) in respect of a portion of the Private Placement. Each Finder’s Warrant entitles the holder to purchase one common share of the Company at a price of $0.065 per share for a period of five years.

All securities issued pursuant to the private placement are subject to a four-month hold period. Net proceeds from the Private Placement will be used for general working capital.

For further information please contact:

Meadow Bay Gold Corporation     www.meadowbaygold.com

Christopher Crupi, CEO
Charles “Bill” Reed, Director
Tel: 604-641-4450

Matthew Harrington, Launch IR
Tel: 613-882-7467

 

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 press release.

This press release includes certain “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward looking information” within the meaning of Canadian securities laws. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual events and results to differ materially from Meadow Bay’s  expectations include the need to satisfy the conditions set forth in any agreement entered into in connection with the Desert Hawk transaction and the equity financing; the need to satisfy regulatory and legal requirements with respect to the Desert Hawk transaction and the equity financing; risks related to the exploration stage of Meadow Bay’s projects; market fluctuations in prices for securities of exploration stage companies; and uncertainties about the availability of additional financing.  Trading in the securities of Meadow Bay should be considered highly speculative.  Meadow Bay does not intend, and does not assume any obligation, to update any forward-looking statements, other than as required by applicable law.

The press release makes reference to historical estimates.  The historical estimates are by definition herein not NI 43-101 compliant and are included herein in for historic context and completeness. There can be no assurances that any of the historical estimates will be able to be categorized as a NI 43-101 compliant resource or reserve category or demonstrate any economic viability. Investors are cautioned not to rely on the historical estimates when making their investment decisions.