Non-Brokered Private Placement
Further to the Company’s news release dated October 21, 2011, Mineral Hill Industries Ltd. (the “Company” or “MHI”) wishes to announce that the Company has now completed a non-brokered private placement of $487,800 with a subscription of 3,048,750 units (the “Units”) of the Company at a price of $0.16 per Unit. Each Unit will comprise one common share and one transferable common share purchase warrant. Each transferable common share purchase warrant is exercisable for one additional common share at $0.22 per share if exercised during the first year from the date of issue and $0.30 per share, if exercised during the second year from the date of issue. The Company will apply the proceeds from the private placement towards its program for the Liberty Hill Gold Mine project and working capital to fund ongoing operations.
Merfin Management Ltd. (“MRF”), a private holding company of which Dieter Peter is president and a trustee of one of the two trusts controlling MRF, subscribed to 2,470,000 units at $0.16 per Unit. Dieter Peter is the Chairman, President & CEO of MHI and such participation would be considered to be a “related party transaction” as defined under Multilateral Instrument 61-101. Other insiders who subscribed to the private placement were Cambrian Capital Corp., (a private company controlled by a director, Mr. Hugh Maddin) for 110,000 units and Mr. Andrew von Kursell, a director, through his private company, Infogen Research Ltd. for 62,500 units.
The closing of this private placement is subject to the final acceptance from the TSX Venture Exchange.
All of the shares, warrants and any shares issued upon exercise of the warrants comprising the units are subject to a hold period and may not be traded in British Columbia for four months and a day from the date of issuance except as permitted by the applicable Securities Acts and the Rules made thereunder and the TSX Venture Exchange.
For further information, please contact:
President & CEO
Telephone: (604) 685-4170