Mega Precious Metals Inc.

January 19, 2011 08:00 ET

Mega Precious Metals Announces $7 Million Bought Deal Financing

(Figures in Canadian Dollars)

THUNDER BAY, ONTARIO--(Marketwire - Jan. 19, 2011) -


Mega Precious Metals Inc. (TSX VENTURE:MGP) (the "Company") announces that it has entered into an agreement with a syndicate of underwriters (the "Underwriters), led by Stonecap Securities Inc., whereby the Underwriters have agreed to purchase, on a bought deal basis, 8,750,000 flow-through common shares (the "Flow-Through Common Shares") from treasury of the Company at a price (the "Issue Price") of $0.80 per Flow-Through Common Share for gross proceeds of $7,000,000 (the "Offering").

The Company also grants the Underwriters an option to purchase up to an additional 15% of the Flow-Through Common Shares at the Issue Price exercisable for up to 30 days following Closing for additional gross proceeds of up to $1,050,000.

The gross proceeds from the sale of the Flow-Through Common Shares will be used for exploration at the Company's Canadian exploration properties.

The Offering will be made by way of a short-form prospectus to be filed in all provinces of Canada, except Quebec. The Offering is scheduled to close on or about February 16, 2011, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange and the securities regulatory authorities.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless an exemption from such registration is available.

Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.

Contact Information

  • Mega Precious Metals Inc.
    Jim Rogers
    President and Chief Executive Officer
    O: 807-766-3380 or Toll Free: 877-592-3380