MGold Resources Inc.

March 23, 2011 23:47 ET

MGold Completes $599,970 Private Placement

MONTREAL, QUEBEC--(Marketwire - March 23, 2011) - MGold Resources Inc. (TSX VENTURE:MNI) ("MGold" or the "Company") has completed the second tranche of a non-brokered private placement of 953,363 units (the "Units") at a purchase price of $0.11 per Unit for gross proceeds of $104,870. The first tranche of this non-brokered private placement, which closed on February 25, 2011, provided gross proceeds of $495,100 resulting in combined gross proceeds of $599,970 for the entire Offering.

Each Unit consists of one (1) common share and one (1) common share purchase warrant (the "Warrants"). Each Warrant entitles its 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 $0.17 per common share.

Directors and officers of MGold have participated in the Offering, subscribing for a total of 1,173,363 Units for $129,070. All securities issued in the course of the Offering will be subject to a four month and one day hold period.

Net 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 property 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)