LONDON, ONTARIO--(Marketwired - June 28, 2016) - Montana Gold Mining Company Inc. ("MGM" or the "Company") (CSE:MGM) has agreed to a $200,000 financing in the form of a convertible debenture. The $200,000 loan amount (the "Loan Amount") may be converted by the lender at any time up to November 1, 2016 into units priced at $0.055 per unit. Each unit consists of one common share and one common share purchase warrant exercisable at $0.10 per share for up to three years "Units"). Prior to conversion the Company may repay all or any portion of the Loan Amount with interest shall be payable at the rate of 1% per month. If the Loan Amount has not been repaid on or before November 1, 2016 it shall be automatically converted into Units. The lender will receive a transaction fee consisting of 2,850,000 share purchase warrants exercisable at $0.07 for three years.
The lender is arms-length to the Company. Any securities issued in connection with the convertible debenture are subject to a four month hold period expiring October 24, 2016. The proceeds of the convertible debenture are to be used for exploration and working capital. This financing is subject to regulatory filings or approvals.
Montana Gold Mining Company Inc. is a reporting issuer in good standing in the Province of Ontario whose common shares are listed on CSE (Symbol: MGM). There are 50,964,765 common shares issued and outstanding in the capital of the Company, prior to any issuances from the convertible debenture discussed herein.
The Company owns a 100% working interest in three gold exploration projects located in the US states of Nevada and Montana and in the Province of Ontario, Canada. Further information is also available at www.montanagoldmining.com or www.Facebook/montanagoldmining.
CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
This news release contains "forward-looking information" (within the meaning of applicable Canadian securities laws) and "forward-looking statements" (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995). Such statements or information are identified with words such as "anticipate", "believe", "expect", "plan", "intend", "potential", "estimate", "propose", "project", "outlook", "foresee" or similar words suggesting future outcomes or statements regarding an outlook. Such statements include, among others, those concerning the timing of the repayment of the convertible debenture or the conversion into units.
Such forward-looking information or statements are based on a number of risks, uncertainties and assumptions which may cause actual results or other expectations to differ materially from those anticipated and which may prove to be incorrect.
Although the Company believes that the expectations reflected in the forward-looking information or statements are reasonable, prospective investors in the Company's securities should not place undue reliance on forward-looking statements because the Company can provide no assurance that such expectations will prove to be correct. Forward-looking information and statements contained in this news release are as of the date of this news release and the Company assumes no obligation to update or revise this forward-looking information and statements except as required by law.