ZURICH, SWITZERLAND / ACCESSWIRE / December 11, 2017 / Today, MGX Minerals Inc. (CSE: XMG; OTCQB: MGXMF; Frankfurt: 1MG) announced the closing of the first tranche of its non-brokered private placement financing, with $6.3 million of the $7.5 million CAD already raised. The second and final tranche is anticipated to close on Friday, December 15, 2017.
According to the CSE, this first tranche includes heavy institutional investment such as from Sprott Asset Management (the leading resource fund in Canada) which increased its stake to a total of 2.9 million units. Other funds also increased their positions, while several new institutional and private investors took a position for the first time. One of the largest shareholders, the well-known Canadian investor Robert Hirschberg, increased its position to now 4 million units.
The proceeds of the financing will be used for the commercial deployment of MGX's lithium extraction system as well as for exploration. Along with the great news that this emerging lithium producer generated over the last weeks, the funds from this strategic financing will certainly speed up its production and exploration ventures.
The relatively fast closing of the first tranche without any broker support clearly demonstrate that existing and new shareholders strongly believe in MGX and it's future that is about to materialize with the deployment of the first set of commercial systems for water purification and mineral extraction.
How many lithium companies do you know that are about to go into production? With a current market capitalization of $81 million CAD, MGX is well positioned to create shareholder value.
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SOURCE: Rockstone Research
