Mengold Resources Inc.

Mengold Resources Inc.

November 02, 2009 17:39 ET

Mengold Closes Private Placements Totaling $558,000

TORONTO, ONTARIO--(Marketwire - Nov. 2, 2009) - Mengold Resources Inc. ("Mengold") (TSX VENTURE:MNI) is pleased to announce the closing of non-brokered private placements totaling $558,000. The proceeds of the private placements are to be used to fund a drilling program on Mengold's Goldcreek property located in the Shebandowan area, west of Thunder Bay, Ontario and for general corporate purposes.

Mengold closed private placements consisting of 12,500,000 flow-through common shares at the price of $0.03 per flow-through share for gross proceeds of $375,000 and 6,100,000 units (each a "Unit") at the price of $0.03 per Unit for gross proceeds of $183,000. Each Unit will consist of one common share and one transferable share purchase warrant (each a "Warrant"), each Warrant entitling the holder thereof to purchase one additional common share at a price of $0.05 for a period of 12 months following the closing date and thereafter at the price of $0.10 for an additional period of 6 months.

The MineralFields Group purchased 8,000,000 flow-through shares. Subject to regulatory approval, Limited Market Dealer Inc. ("LMD"), a division of First Canadian Securities(R), will be entitled to receive a cash finder's fee representing 6% of the gross proceeds raised by LMD and non-transferable finder's warrants entitling LMD to purchase 640,000 common shares, at the price of $0.05 for a period of 12 months following the closing date and thereafter at the price of $0.10 for an additional period of 6 months.

"Mengold is very pleased to be renewing its relationship with MineralFields Group", stated Mr. Joel Scodnick, President and Chief Executive Officer of Mengold. "This is an important milestone in the growth of Mengold and we look forward to working with MineralFields Group as we develop our holdings."

Insiders of Mengold have purchased a total of 3,000,000 flow-through common shares and 1,433,333 Units under the private placements.

About MineralFields, Pathway and First Canadian Securities(R)

MineralFields Group (a division of Pathway Asset Management), based in Toronto, Vancouver and Calgary, is a mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds (including the Pathway Multi Series Funds Inc. corporate-class mutual fund series). Information about MineralFields Group is available at First Canadian Securities(R) is active in leading resource financings (both flow-through and hard dollar PIPE financings) on competitive, effective and service-friendly terms, and offers investment banking, mergers and acquisitions, and mining industry consulting, services to resource companies. MineralFields and Pathway have financed several hundred mining and oil and gas exploration companies to date through First Canadian Securities(R).

About Mengold

Mengold Resources Inc. is engaged in mineral exploration for precious and base metals. The Company is also actively exploring the Burchell Lake property prospective for gold, copper, zinc and molybdenum, in the Shebandowan area of Northwestern Ontario. Mengold has 43,936,088 common shares outstanding.

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Neither 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 news release.

Contact Information

  • In Canada
    Mengold Resources Inc.
    Joel Scodnick, President and Chief Executive Officer
    (705) 522.4439
    (705) 522.8694 (FAX)
    Mengold Resources Inc.
    Douglas G. Reeson
    Chief Financial Officer and Director
    (416) 533.0323
    (416) 533.2890 (FAX)
    In Europe
    Mengold Resources Inc.
    W. Ian L. Forrest, Chairman and Director (FAX)