Mexican Gold closes $850,000 private placement

Executive Summary

• Mexican Gold Mining Corp. has closed a non-brokered private placement, raising aggregate gross proceeds of $850,000.
• The company issued 10 million units at a price of 8.5 cents per unit, with net proceeds designated for working capital and general corporate purposes.
• An insider, John Anderson, participated in the offering, acquiring 550,000 units in a related party transaction that relied on specific exemptions from valuation and minority shareholder approval requirements.

Key Details

• Gross Proceeds: $850,000.
• Units Issued: 10,000,000 units.
• Price Per Unit: 8.5 cents.
• Unit Composition: Each unit consists of one common share and one transferable common share purchase warrant.
• Warrant Terms:
  • Exercise Price: 12 cents per share.
  • Expiration Date: November 14, 2028 (three years from issuance).
  • Ownership Cap: Prohibits exercise if it results in beneficial ownership exceeding 9.99% of issued and outstanding shares.
• Use of Proceeds: Working capital for general corporate purposes.
• Finders' Fees: None paid.
• Hold Period: Securities are subject to a hold period expiring March 15, 2026 (four months and one day from issuance).
• Regulatory Status: Offering remains subject to final acceptance by the TSX Venture Exchange.
• Insider Participation:
  • Participant: John Anderson (Chairman of the Board).
  • Units Acquired: 550,000 units.
  • Purchase Price: $46,750.
  • Transaction Type: Related party transaction under Multilateral Instrument 61-101.
  • Exemptions Relied Upon: Sections 5.5(a) and 5.7(1)(a) of MI 61-101 (fair market value and consideration did not exceed 25% of market capitalization).
  • Disclosure: No material change report filed 21 days prior to closing; deemed reasonable to expedite the offering.
  • Approval: Unanimously approved by the Board of Directors.