VANCOUVER, British Columbia, Oct. 26, 2018 (GLOBE NEWSWIRE) -- Mountain Boy Minerals Ltd (“Mountain Boy” or the “Company”) (TSX.V: MTB; Frankfurt: M9U) has arranged a share consolidation of five-old-for-one-new (5:1) common share and a $300,000 private placement at $0.25 per unit (post-consolidation), subject to the TSX Venture Exchange approval.
Mountain Boy has also closed the previously announced transaction to sell its 20% interest in the Silver Coin Property to Ascot Resources Ltd. (TSXV:AOT). Mountain Boy has now transferred its interest in the property to Ascot and received 3,794,874 common shares of Ascot.
In order to tighten the share structure of Mountain Boy and allow it to focus on advancing its exploration projects in the Golden Triangle of British Columbia with additional capital, the Company is proceeding with a consolidation of its issued and outstanding common shares on the basis of one (1) post-consolidation common share for every five (5) pre-consolidated common shares (the "Consolidation").
Currently, a total of 168,351,910 common shares of the Company are issued and outstanding and after the Consolidation, the Company will have approximately 33,670,382 issued and outstanding common shares prior to the private placement.
Mountain Boy is completing a private placement in order to fund certain ongoing exploration programs and for working capital. These funds combined with the Ascot shares received will put Mountain Boy in a strong working capital position.
The non-brokered private placement will consist of up to 1,200,000 units at $0.25 per unit (post-consolidation). Each unit will consist of one common share of the Company and one common share purchase warrant. Each whole warrant will be exercisable for one common share of the Company at a price of $0.30 (post-consolidation) for a period of two years from the date of issuance.
Subject to the approval of the TSX Venture Exchange and applicable laws, the Company may pay finder’s fees. Certain of the Company's insiders may participate in the private placement.
About Mountain Boy Minerals Ltd.
Mountain Boy is a Canadian-based mineral exploration company with a property portfolio of gold and silver projects within the Stewart region in the very prolific Golden Triangle region of British Columbia. Mountain Boy holds a 35% interest in the Red Cliff gold project, 100 per cent of the high-grade MB silver project, and is acquiring 100 per cent of the BA and Surprise Creek volcanic massive sulphide (VMS) copper-lead-zinc-silver projects. For a complete listing of the Company assets and developments, visit the Company website at www.mountainboyminerals.ca.
On behalf of the Board of Directors:
President & CEO
For further information, contact:
VP Corporate Development
Neither the 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.