Magna Terra closes $2-million private placement

Executive Summary

• Magna Terra Minerals Inc. closed an upsized non‑brokered premium flow‑through private placement, raising $2,000,004.08 in gross proceeds.
• The $2 M will fund expanded Phase 2 exploration at the Rocky Brook (NB) and Humber (NL) projects, following exciting Phase 1 discoveries earlier this summer.
• Related‑party participation: insider Michael Gentile purchased 856,667 shares for $115,650.05, increasing his stake to 17.4 % of outstanding common shares.

Key Details

• Offering size & price: 14,814,845 premium flow‑through common shares at $0.135 per share.
• Gross proceeds: $2,000,004.08 (net of fees).
• Use of proceeds: Canadian exploration expenses that qualify as flow‑through critical‑metal mining expenditures for the Humber and Rocky Brook projects (preliminary exploration programs).
• Insider participation: Michael Gentile acquired 856,667 shares for $115,650.05; his ownership rose from 19.2 % to 17.4 % on a non‑diluted basis after the closing.
• Related‑party transaction: Exempt from MI 61‑101 valuation/minority approval requirements (offering < $2.5 M, not listed on a designated exchange, approved by two‑thirds of independent directors).
• Finder compensation: $54,985 paid in finders’ fees; 610,944 finder warrants issued, each exercisable for one common share at $0.15 per share for 24 months.
• Regulatory hold period: All securities subject to a four‑month‑and‑one‑day hold period; final approval pending from the TSX Venture Exchange.
• CEO comment: Lew Lawrick highlighted investor demand, oversubscription, and plans to announce Phase 2 exploration programs for Rocky Brook and Humber in the coming weeks, as well as further results from Phase 1 work.

Notable Quotes

“We are very pleased with the investor response and resulting demand for this oversubscribed financing… The funds raised will allow us to expand our planned follow‑up programs on both our Rocky Brook project in New Brunswick and our Humber project in Newfoundland and Labrador…” – Lew Lawrick, President & CEO, Magna Terra Minerals Inc.