MGold Resources Inc.

December 23, 2010 23:43 ET

MGold Announces Private Placement Offering

MONTREAL, QUEBEC--(Marketwire - Dec. 23, 2010) - MGold Resources Inc. ("MGold" or the "Company") (TSX VENTURE:MNI) is undertaking a non-brokered private placement of up to $500,000 of units (the "Units"), subject to the approval of the TSX Venture Exchange. Each Unit consists of one (1) common share and one (1) common share purchase warrant at a price of $0.15 per Unit. Each warrant entitles the holder thereof to purchase one additional common share in the capital of MGold for a period expiring on December 21, 2012, at an exercise price of $0.25 per share.

All securities issued in the course of the Offering will be subject to a hold period of four months and one day. Insiders of the Company may subscribe for in excess of 25% of the aggregate proceeds of the contemplated private placement. Proceeds of the Units will be used for general working capital purposes.

MGold is engaged in mineral exploration for precious and base metals. The Company holds the Burchell Lake and Goldcreek properties, both prospective for gold, copper, zinc and molybdenum, in the Shebandowan area of Northwestern Ontario.

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 release.

Contact Information

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