White Rock, British Columbia – American Manganese Inc. (the “Company”) has closed the first tranche of its non-brokered private placement of the Company’s units (“Units”) which was previously announced in a news release dated July 21, 2014.
The Company raised $37,000 for the first tranche through the sale of 1,233,333 units of the Company (“Units”) at a price of $0.03 per unit. Each Unit is comprised of one common share in the capital of the Company (a “Share”) plus a share purchase warrant (a “Warrant”). Each Warrant entitles the holder to purchase one Share at a price of $0.05 during the three years following the date of issuance.
The Company paid $1280 cash (which is equal to 8% of the gross proceeds for which finder’s fees are payable) and 42,666 Warrants (which is equal to 8% of the number of Units for which finder’s fees are payable) as finder’s fees for this first tranche.
The Company expects to use approximately $20,000 towards mineral tenure fees on its Artillery Peak Manganese Project, $50,000 of the proceeds to pay audit-related fees, $20,000 towards office rent, $3500 towards transfer agent fees, $5000 towards legal fees and the rest towards general working capital. No part of the proceeds will be used to pay management fees or to pay Related Parties. While the Company intends to spend the funds as stated, a reallocation of funds for sound business reasons may be necessary.
All securities issued pursuant to the private placement will be subject to resale restrictions for a period of four months from the closing date.
About American Manganese Inc.
American Manganese Inc. is a diversified specialty and critical metal Company focusing on potentially becoming the lowest cost producer of electrolytic manganese products from its Arizona Manganese Project.
On behalf of Management
AMERICAN MANGANESE INC.
Larry W. Reaugh
President and Chief Executive Officer