Larry W. Reaugh, President and Chief Executive Officer of American Manganese Inc. (“American Manganese” or “AMI” or the “Company”), (TSX.V: AMY; OTC US: AMYZF; FSE: 2AM), is pleased to announce that the Company intends to complete a non-brokered private placement for gross proceeds of up to $200,000 by way of a unit offering at a price of $0.02 per unit (the “Offering). Each unit will consist of one common share of AMI and one common share purchase warrant. Each warrant will be exercisable for one common share at a price of $0.05 per common share for a period of 2 years from the date of closing of the offering.
The proceeds will be primarily used to conduct “proof of concept” testing of the Company’s proprietary hydrometallurgical process for large scale recycling lithium-ion electric vehicle batteries. The balance will be used to pay patent application fees, exchange fees, regulatory filing fees, current liabilities, as well as general administration expenses. No part of the proceeds will be used 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 offering will be subject to resale restrictions for a period of four months from the closing date. The Offering is available to all shareholders who held Shares on or before April 20, 2016. If the Offering is over-subscribed, the Company will accept subscriptions from any share holder except Insiders. Notwithstanding the foregoing, the Company reserves the right to reject any subscription in its sole discretion. Finders’ fees payable in cash, shares or warrants or a combination may be paid in connection with the private placement.
This Offering is subject to approval of the regulatory authorities and finders’ fees may be paid in accordance with TSX Venture Exchange policies. The Company will be applying to the TSX Venture Exchange for a waiver of the $0.05 minimum pricing requirement.
About American Manganese Inc.
American Manganese Inc. is a diversified specialty and critical metal company focused on capitalizing on its patented intellectual property through low cost production or recovery of electrolytic manganese products throughout the world, and recycling of spent electric vehicle lithium-ion rechargeable batteries.
Interest in the Company’s patented process has adjusted the focus of American Manganese Inc. toward the examination of applying its patented technology for other purposes and materials. American Manganese Inc. aims to capitalize on its patented technology and proprietary know-how to become and industry leader in the recycling of spent electric vehicle lion ion batteries (Please see the Company’s March 31, 2016 press release for further details).
On behalf of Management
AMERICAN MANGANESE INC.
Larry W. Reaugh
President and Chief Executive Officer