American Manganese Inc., (TSX.V: AMY; Pink Sheets: AMYZF) is pleased to announce that it has closed the Offering described in the previously announced news releases dated May 31, 2010 and June 10, 2010. The Company has issued 4,613,184 units (each a “Unit”) at a price of $0.22 per Unit for gross proceeds of $1,014,900.48. Each Unit consists of one common share in the capital of the Company (a “Common Share”) and one transferable common share purchase warrant (a “Warrant”). Each Warrant will entitle the holder to acquire one Common share at a price per Common Share of $0.30 for a period of 24 months following the date of closing of the Offering.
Pope & Company Limited acted as agent and received an 8% cash commission as well as compensation options entitling the Agent to purchase that number of Units of the Company that is equal to 8% of the aggregate number of Units sold under the Offering at an exercise price of $0.22 per Unit for a period of 24 months following the closing date of the Offering.
The Units were sold pursuant to an amended short form prospectus dated June 10, 2010, on a
best efforts basis.
The net proceeds from the sale of the Units will be used for diamond drilling on the Company’s Artillery Mountain Manganese Project; for metallurgical testing and process design work; for BLM payments and option payments to patent holders; and for general working capital.
The Units have not been, nor will they be registered under the United States Securities Act of 1933, as amended and may not be offered or sold within the United States, or to or for the account or benefit of U.S. persons without registration or pursuant to an applicable exemption from the U.S. Registration requirements.
This press release does not constitute an offer to sell, nor is it a solicitation of an offer to buy securities.
About American Manganese Inc.
American Manganese Inc. is a diversified exploration and development company focusing its attention on mineral properties and commodities used in the steel manufacturing industry.
On behalf of Management
AMERICAN MANGANESE INC.
Larry W. Reaugh
President and Chief Executive Officer