Apr 26, 2016
VANCOUVER, BC - Maritime Resources Corp. (MAE-TSX Venture, "Maritime") is pleased to report that a portion of the non-brokered private placement announced on April 18, 2016 has closed for gross proceeds of $790,500.
The Company has issued 5,270,000 Equity Units at $0.14 per Equity Unit and 5,270,000 Royalty Units at $0.01 per Royalty Unit. Each Equity Unit consists of one common share and one half of one non-transferable share purchase warrant (the "Warrants"). Each whole Warrant attached to the Equity Units entitles the holder to purchase one common share at a price of $0.20 per common share for 36 months (note this is a change from 24 months previously announced). The Company also reports that due to interest, the Company is increasing the placement by up to 20% to a total $2,400,000. The increase in the financing will be subject to regulatory approval.
Total royalties payable from the Royalty Units (the "Royalty Payment") will be capped at an amount equal to 100% of the total offering plus the sum of $195,000 raised in the previously completed private placement announced on February 12, 2016 (collectively, the "Royalty Financings"). Royalty Payments will be made annually, beginning on the first anniversary of the date of commencement of commercial production from the Project. Upon payment of aggregate Royalty Payments totaling 100% of the total investment made pursuant to the Royalty Financings, the Royalty will terminate. Royalty Payments will be funded solely from 10% of annual net cash flow from the Green Bay Project. For purposes of the Royalty, "net cash flow" will mean net production revenues realized from the Project after deducting all Project operating and debt servicing costs. Maritime also agrees that it will offer all Royalty Payments to be paid either in cash or in gold, at the option of the Company.
Finders' fees totaling $57,431.25 and 382,875 Finders Warrants were issued to Canaccord Genuity ($40,556.25 and 270,375 Finders Warrants) and Leede Jones Gable Inc. ($16,875 and 112,500 Finders Warrants) in connection with the completed portion of the offering. The Finders Warrants have the same terms as the Warrants attached to the Equity Units.
All the securities issued hereunder are subject to a four month hold period and may not be traded until August 23, 2016.
On behalf of the Board of Directors,