Mega Precious Metals Inc.
TSX VENTURE : MGP

January 19, 2011 15:41 ET

Mega Precious Metals Announces Increase in Bought Deal Financing to $10 million

(Figures in Canadian Dollars)

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

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

Mega Precious Metals Inc. (TSX VENTURE:MGP) (the "Company") announces that it has increased its previously announced bought deal financing, led by Stonecap Securities Inc. and including PowerOne Capital Markets Limited and Octagon Capital Corporation, to 12,500,000 flow-through common shares (the "Flow-Through Common Shares") at $0.80 (the "Issue Price") for gross proceeds of $10,000,000 (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 of the Offering for additional gross proceeds of up to $1,500,000.

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 now scheduled to close on or about February 24, 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.

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.

Contact Information

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