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Mega Precious Metals Announces Completion of First Tranche of Pacific Road Financing & to Host a Conference Call January 7, 2014


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© Marketwire 2013
2013-12-31 22:55:04 -

THUNDER BAY, ONTARIO -- (Marketwired) -- 12/31/13 -- Mega Precious Metals (TSX VENTURE: MGP) ("Mega" or the "Company") is pleased to announce that it has completed the first tranche of the previously announced financing (the "Tranche 1 Financing") with Pacific Road Resources Funds ("Pacific Road") whereby Pacific Road has invested in US$3,330,398 aggregate principal amount of unsecured zero coupon convertible notes (the "Tranche 1 Convertible Notes"), which are convertible into Mega common shares ("Common Shares") at a conversion price of C$0.1122 per Common Share, pursuant to an agreement (the "Definitive Agreement") dated December 4, 2013 between Pacific Road and the Company. The amount of the investment was increased as a result of the completion of the Company's private placement which closed on December 20, 2013.



Gross proceeds from the Tranche 1 Financing will be used to fund exploration and development on Mega's Monument Bay Project.





Pacific Road has the right to invest three additional tranches for a total investment of up to US$40 million, which are exercisable by Pacific Road following the satisfaction of certain deliverables by the Company regarding its Monument Bay Project. The cumulative funding from Pacific Road, should each tranche be exercised, will allow the Company to fully fund the technical studies required to advance the Monument Bay Project to feasibility, including a preliminary economic assessment (expected to be completed in 2014) and a pre-feasibility study thereafter. For further details, please refer to the Company's press release dated December 4, 2013 and a copy of the Definitive Agreement, each of which is accessible on the Company's SEDAR profile at www.sedar.com : www.sedar.com .



As consideration for its services as the Company's financial advisor, Paradigm Capital Inc. received a commission equal to 3% of the aggregate gross proceeds of the Tranche 1 Financing. Pacific Road Capital Management also received a fee equal to 3% of the aggregate gross proceeds of the Tranche 1 Financing.



The Tranche 1 Convertible Notes are subject to a four-month hold period under applicable securities laws in Canada.



Mega will be hosting a conference call on Tuesday January 7th at 11 am ET to discuss the recently completed financing agreement for up to US$40Million with Pacific Roads Resources Funds and the completion of the $1.4Million best efforts flow through financing.



The call will be hosted by Glen Kuntz, President, Chief Executive Officer & Director.



Conference Call Details:



Tuesday January 7, 2014 at 11:00am EST



Toll-Free: (866) 261-6767



Local: (416) 850-2050



Passcode: 2904885#



Mega Precious Metals Inc. is a leading Canadian-based exploration company with a high quality pipeline of projects located in the mining friendly jurisdictions of Northwestern Ontario, Manitoba and Nunavut. The Company's significant portfolio includes the flagship Monument Bay Gold Tungsten Project in NE Manitoba as well as the N. Madsen Gold Project in the prolific gold mining district of Red Lake, Ontario. Mega has established a record of delivering rapid growth through their focused and low cost approach to exploration and resource development. The Company's common shares trade on the TSX Venture Exchange under the symbol MGP.



For further information and presentation material, please review the Mega website at www.megapmi.com : www.megapmi.com .



Forward-looking Statements



Certain statements in this press release contain information that may constitute forward-looking information under applicable Canadian securities legislation, including but not limited to, information relating to the full funding of technical studies and the use of net proceeds. These forward-looking statements represent management's best judgment based on current facts and assumptions that management considers reasonable. The Company makes no representation that reasonable business people in possession of the same information would reach the same conclusions. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to, the strength of the global economy, fluctuations in the price of gold and operational, funding and liquidity risks. Readers should not place undue reliance on forward-looking statements. More information about risks and uncertainties affecting the Company and its business is available in the Company's filings which are posted on sedar at www.sedar.com : www.sedar.com . The Company does not intend, and does not assume any obligation, to update these forward-looking statements or to update the reasons why actual results could differ from such information unless required by law.



Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.




Contacts:
Mega Precious Metals Inc.
Glen Kuntz, P.Geo.
President, Chief Executive Officer & Director
807-766-3380 or Toll Free: 877-592-3380
info@megapmi.com :
www.megapmi.com : www.megapmi.com



Press Information:




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