Toronto, Canada (May 13, 2015) - Mammoth Resources Corp. (TSX-V: MTH) would like to announce that it intends to proceed with a non-brokered private placement of up to 12.0 million units of the Company (the "Units") at an offering price of $0.01 per Unit, for gross proceeds of up to $120,000 (the "Private Placement"). Each Unit consists of one common share of the Company (a "Common Share") and one common share purchase warrant (the "Warrant"). Each Warrant will entitle the holder thereof to acquire one Common Share until two years following closing of the private placement, at an exercise price of $0.05. The Company has set no minimum number of Units to be distributed and no minimum dollar amount required to be raised in connection with the Private Placement.
The gross proceeds of the Private Placement will be used for working capital, general corporate expenses and property taxes at the company's Tenoriba, high sulphidation gold-silver property located in the prolific Sierra Madre gold belt in southwestern Chihuahua State, Mexico. Assuming the Private Placement is fully subscribed, the company intends to allocate the gross proceeds of the Private Placement as follows: $60,000 for the Company's working capital and $60,000 for Tenoriba property taxes for 2015. In the event of an oversubscription to the Private Placement, the company may seek TSX Venture Exchange approval for such oversubscription or may allocate Units on a pro-rata basis to subscribers.
The Private Placement will be 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 Company has set May 13, 2015, as the record date for the purpose of determining existing shareholders of the Company who are entitled to purchase Units under the Private Placement. This exemption is not available to shareholders resident in Ontario or Newfoundland, or jurisdictions outside of Canada. The Company may combine the offering under the instrument with other available prospectus exemptions, including sales to accredited investors.
The Private Placement is subject to TSX Venture Exchange approval and the securities issued pursuant to the Private Placement will be subject to a four-month hold period. The company may pay finders' fees of cash and/or securities on a portion of the Private Placement. Anyone interested in this private placement is encouraged to contact Thomas Atkins at: www.mammothresources.ca.
Update on Recent Corporate Activities:
On November 3, 2014 the company received a permit for drilling up to 20 holes on its Tenoriba property, Chihuahua, Mexico, the permit is valid for 2 years from date of receipt. Effective January 31, 2015 the company instituted cost cutting measures eliminating all salaries and was granted approval by the Tenoriba property owners to suspend property payments until June 30, 2016. In early March 2015, two companies visited the Tenoriba property and the company has signed a confidentiality agreement with a third company which intends to visit the property shortly. Both of those that visited were enthusiastic regarding the potential of the Tenoriba property, any subsequent steps towards an investment proposal in the company of project await approval from the investment committees of these companies. In addition to these activities, company management continues to seek low capital cost, brief development time-line mineral producing opportunities in Mexico and other favourable jurisdictions in the Americas and a number of opportunities with these characteristics are being studied for possible investment.
About Mammoth Resources:
Mammoth Resources (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.