VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 27, 2014) - Magna Resources Ltd. (CSE:MNA)(OTCQX:MGRZF) (the "Company" or "Magna") has retained Palisade Capital Corp. ("Palisade") as an independent consultant to provide marketing services, setting up marketing teleconferences and road shows for the European, Canadian and U.S. investment community, and assisting in the distribution of news releases. Collin Kettell and Sean Zubick, the principals of Palisade, will be primarily responsible for providing the marketing services to the Company.
Palisade is a consulting services company headquartered in London, UK. Palisade offers strategic consulting services to public and private companies looking to expand their corporate footprints and attract new international investors. From marketing road shows to full-service investor relations and promotional video campaigns, Palisade utilizes innovative strategies and techniques to drive broader investor awareness, increased liquidity and higher valuations for its clients.
In consideration for Palisade's services, the Company has agreed to pay Palisade a total fee of $50,000 for a term of 10 months (translating to $5,000 per month) commencing March 26, 2014, and ending on January 26, 2015. In addition, the Company has agreed to grant Palisade stock options to purchase a total of 300,000 common shares at a price of $0.15 per share for a period of two years, vesting subject to the Company's stock option plan and in accordance with the policies of the Canadian Securities Exchange ("CSE").
The Company is announcing a non-brokered private placement (the "Private Placement") for up to 666,666 Units ("Units") at a price of $0.15 per Unit to raise total proceeds of $100,000. Each Unit will be 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.
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.
Finder's fees or commissions may be payable by the Company in connection with this Private Placement.
The proceeds of this Private Placement are for the Company's general working capital as well as preparatory work for the Phase 1 drill program at the Company's 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 11 State potash leases, 2 Federal Potash Prospecting Permits and an option to acquire 100% interest in 12 Federal potash Prospecting Permits and 11 federal Potash Prospecting Permit applications in the State of Utah comprising 20,620 hectares (50,950 acres) that constitute the Green River Potash Project, host to a significant potash Exploration Target.
|On behalf of the Board of Directors
||"Rudy De Jonge"
|Mike Sieb, President
||Rudy De Jonge, CEO
Neither the OTCQX nor the Canadian Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian National Stock Exchange) accepts responsibility for the adequacy or accuracy of this release.
Statements in this press release other than purely historical information should not be relied upon, including statements relating to the Company's 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 Company's 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.