Mantra Capital Inc.
TSX VENTURE : MTR

Mantra Capital Inc.

August 05, 2014 09:30 ET

Mantra Capital Announces Closing of Private Placement; Completes Initial Wind Mountain Option Payments

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 5, 2014) - Mantra Capital Inc. ("Mantra" or the "Company") (TSX VENTURE:MTR) is pleased to announce that it has completed its oversubscribed, non-brokered private placement previously announced on July 8 and 17, 2014. The Company issued 4,287,000 common shares at a price of $0.12 per share, raising gross proceeds of $514,440.

Part of the proceeds were used to pay the initial cash payment under the Company's option to acquire a 100% interest in the Wind Mountain gold and silver property in Nevada. The Company paid $275,000 and issued 675,676 common shares to the optionor, Bravada Gold Corporation. The option exercise terms are described in the Company's July 8, 2014 news release announcing the Wind Mountain Option Agreement.

Steven Khan, Interim CEO, commented, "With this initial option payment to acquire the Wind Mountain gold project, the Company has completed the first step in its strategy to become a new gold development company. We would like to thank the investors who participated in the financing which allows us to move forward on these plans."

The Company intends to engage Mine Development Associates of Reno, Nevada to prepare an updated technical report and preliminary economic assessment for the Wind Mountain Property. The new report will be submitted to the TSX Venture Exchange on or before October 31, 2014 and will subsequently be filed under Mantra's profile on SEDAR. The existing Updated Technical Report and Preliminary Economic Assessment, Wind Mountain Gold-Silver Project Washoe County, Nevada, was prepared by Mine Development Associates for Bravada Gold Corporation.

Steven Khan, Rick Van Nieuwenhuyse, Raj Chowdhry and Ken Collison acquired shares under the private placement. Their participation is considered to be a "related party transaction" as defined under Multilateral Instrument 61-101. The transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of any shares issued to them, or the consideration paid, exceeded 25% of the Company's market capitalization. The shares issued in the private placement are subject to a four month hold period that expires on December 2, 2014.

ABOUT MANTRA CAPITAL INC.

Mantra Capital Inc. is a growth company focused on the exploration and development of precious and base metals. The Company currently holds options to acquire an undivided 100% interest in and to the Wind Mountain gold and silver property in Nevada and an undivided 100% interest in the Honeymoon Property, an early stage gold-silver-copper property located on the west side of Adams Lake, British Columbia. Mantra is led by a highly experienced executive management team that has a successful track record of building shareholder value through exploration, corporate finance, and mine development.

For more information please visit www.mantracapitalinc.com.

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.

Cautionary Note Regarding Forward-Looking Statements: This news release includes certain forward-looking statements and forward-looking information (together, "forward-looking statements"). All statements other than statements of historical fact included in this release, including, without limitation, statements regarding the preparation of an updated technical report and other future plans and objectives of the Company. There can be no assurance that such statements will prove to be accurate and actual results and future events may vary from those anticipated in such statements. Important risk factors that could cause actual results to differ materially from the Company's plans or expectations include risks related to Exchange acceptance of the updated technical report, regulatory changes, risks associated with obtaining required Exchange and other approvals, removal of conditions, fundraising, and risk associated with mineral exploration, including the risk that actual results of exploration will be different from those expected by management. The forward-looking statements in this news release were developed based on the expectations of management, including that Exchange acceptance for the proposed transactions will be obtained, conditions will be satisfied, required fundraising will be completed and the other risks described above will not materialize. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as otherwise required by applicable securities legislation.

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