|Toronto, Canada (March 31, 2017) - Mammoth Resources Corp. (TSX-V: MTH), (the "Company") is pleased to announce that it has completed a non-brokered Private Placement, raising $226,000 of gross proceeds, by issuing 2,825,000 units of the Company (the "Units"), previously announced on February 2, 2017 for an amount at that time targeted to raise $150,000. The Private Placement was at an offering price of $0.08 per Unit, with each Unit consisting of one common share of the Company and one common share purchase warrant (the "Warrant"). Each Warrant will entitle the holder thereof to acquire one common share at an exercise price of $0.12 per share for a period of 18 months following closing of the private placement.
The gross proceeds of the Private Placement will be used to advance exploration activities and some minor working capital and general corporate expenses. The exploration activities to include mechanical trenching and construction of access to facilitate drilling plus some in-fill mapping and sampling on the recently announced PIMA geochemical sampling program.
The Private Placement was conducted in reliance upon British Columbia Instrument 45-534 (the "Instrument"), which permits an issuer to distribute securities to its existing shareholders, subject to the terms of the instrument. The TSX Venture Exchange has granted approval for this Private Placement.
The securities issued pursuant to the Private Placement will be subject to a four-month hold period. A finders' fees of $3,600 in cash and the issuance of 45,000 shares was paid on this Private Placement.
In other news, the Company has settled debts totaling $188,122 owed to certain insiders, via the issuance of 1,865,412 common shares of the Company, at a price of $0.08 per share for a value of $149,232, pursuant to the minimum pricing rules of the TSX Venture Exchange. Certain insiders have released the Company from debts totaling $38,889 for no consideration. The debt settlement is subject to TSXV approval. The securities to be issued are subject to a hold period of four months and a day. Furthermore, following a period of three years since the last issuance of stock options and with a total of only 166,250 options outstanding, the Company announces the issuance of 1,096,000 stock options to management and directors of the Company at an exercise price of $0.08 per share and subject to the terms of the Company's Stock Option Plan.
Thomas Atkins, President and CEO of Mammoth commented on Private Placement and debt settlement stating: "With this capital raise and the settlement of debts the Company has significantly strengthened its balance sheet and is set to begin the field work program. Field work will commence imminently with the objective of further enhancing the targeting of up to 20 diamond drill holes and providing access to such drill hole locations for a diamond drill program expected to commence later this year. The Company expects to report on this field program in the coming weeks as results become available."
About Mammoth Resources:
Mammoth Resources Corp. (TSX-V: MTH) is a mineral exploration company focused on acquiring and defining precious metal resources in Mexico and other attractive mining friendly jurisdictions in the Americas. The Company has an option to acquire 100% in the Tenoriba Property located in the Sierra Madre Precious Metal Belt in southwestern Chihuahua State, Mexico. The Company continues to seek other option agreements in the Americas on other properties it deems to host above average potential for economic concentrations of precious metals mineralization.
To find out more about Mammoth Resources and to sign up to receive future press releases, please visit the company's website at: www.mammothresources.ca.
Neither the 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.
Forward Looking Information: This news release may contain or refer to forward-looking information. All information other than statements of historical fact that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future are forward-looking statements; examples include the listing of its shares on a stock exchange and establishing mineral resources. These forward-looking statements are subject to a variety of risks and uncertainties beyond the Company's ability to control or predict that may cause actual events or results to differ materially from those discussed in such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, undue reliance should not be placed on these forward-looking statements due to the inherent uncertainty therein.