Mengold Resources Inc.
TSX VENTURE : MNI

Mengold Resources Inc.

November 13, 2006 18:23 ET

Mengold Closes $600,000 Private Placement with MineralFields Group

MONTREAL, QUEBEC--(CCNMatthews - Nov. 13, 2006) - Mengold Resources Inc. (TSX VENTURE:MNI) has closed a previously announced non-brokered private placement financing of $600,000 with the Mineralfields Group comprised of 1,999,998 Flow-through Units at $0.30 per Unit.

Each Unit consists of one flow-through common share and one-half of a transferable non-flow-through share warrant. Each whole warrant entitles the holder to acquire one common share for $0.40 in the first year after closing, and thereafter for $0.50 per share during the second year after closing at which time the warrants expire. The warrants are subject to early expiry upon 14 days notice by Mengold that its common shares have traded for 21 consecutive trading days at $0.60 or more during the first year or $0.70 or more during the second year.

The intended placees will be several flow-through limited partnerships of the MineralFields Group. A finder's fee of 6% of the gross proceeds raised and compensation options equal to 8% of the Units sold are payable to Limited Market Dealer Inc. The compensation options entitle the holder to acquire in aggregate 160,000 units at an exercise price of $0.30 per unit for a period of two years. Each unit is comprised of one common share and one-half of a common share warrant, each warrant with the same terms and conditions as the warrants comprising the Units, as set out above. All securities issued in conjunction with the offering will be subject to a four month hold period.

Proceeds of the financing will be used to fund the Company's exploration activities which are currently focussed on the Burchell Lake and Goldcreek Properties in the Shebandowan area, west of Thunder Bay, Ontario.

About MineralFields

MineralFields Group (a division of Pathway Asset Management) is a Toronto-based mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada during most of the calendar year, as well as hard-dollar resource limited partnerships to investors throughout the world. Information about MineralFields Group is available at www.mineralfields.com.

Mengold Resources Inc. is engaged in mineral exploration for precious and base metals. The Company is currently conducting exploration programs at the Burchell Lake and Goldcreek Properties, both prospective for gold, copper, and zinc, in the Shebandowan area of Ontario. Mengold also holds two properties in Quebec, the Mountain River Property near Sainte-Anne-du-Lac, and the Thetford Property in the Eastern Townships. Mengold has 20,483,534 common shares outstanding (26,808,984 shares fully diluted).

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • In Canada
    Mengold Resources Inc.
    Joel Scodnick, President and Chief Executive Officer
    (705) 522-4439 or (807) 629-7516
    (705) 522-8694 (FAX)
    Email: scodnick@netspectrum.ca
    or
    Mengold Resources Inc.
    Douglas G. Reeson, C.F.O. and Director
    (416) 533-0323
    (416) 533-2890 (FAX)
    or
    In Europe
    Mengold Resources Inc.
    W. Ian L. Forrest, Chairman and Director
    011.41.22.809.9511
    011.41.22.899.9501 (FAX)
    Website: www.mengold.com