Manitou Gold Inc. Announces Completion of Initial Public Offering
March 4, 2010
Not for dissemination into the United States or through U.S. news wire services.
TORONTO, CANADA – Manitou Gold Inc. (TSXV- MTU) (“Manitou”) is pleased to announce that it has completed its initial public offering (the “Offering”) pursuant to which it has issued an aggregate of 8,000,000 units (“Units”) at a price of $0.25 per Unit to raise aggregate gross proceeds of $2,000,000, all pursuant to a final prospectus dated February 16, 2010. Each Unit consists of one common share of Manitou and one-half of one common share purchase warrant (a “Warrant”). Each whole Warrant entitles the holder thereof to acquire one additional common share of Manitou at an exercise price of $0.40 until March 4, 2013.
Canaccord Financial Ltd. (the “Agent”) acted as agent in the Offering, in connection with which it received compensation warrants equal to 11.25% of the total number of Units sold under the Offering. Each compensation warrant entitles the Agent to acquire one common share of Manitou at an exercise price of $0.40 until March 4, 2013. The Agent also received a cash commission of 9% of the gross proceeds of the Offering, with approximately 22% of such commission taken as Units. The Agent also elected to receive an aggregate of 80,000 Units in satisfaction of its corporate finance fee.
Manitou also announces the closing of a concurrent private placement of an additional 1,000,000 Units at a price of $0.25 per Unit, sold by Manitou on a non-brokered basis for gross proceeds of $250,000 (the “Private Placement”). No fees or commissions were paid in respect of the Private Placement.
Following the completion of the Offering and the Private Placement, Manitou has 21,809,803 common shares issued and outstanding. Trading of the common shares of Manitou on the TSX Venture Exchange is anticipated to commence at the opening of business on Monday, March 8, 2010. The common shares of Manitou will trade under the symbol “MTU”.
As partial consideration for the sale of Kenwest Mines Limited, Manitou issued to Goldcorp Inc. (“Goldcorp”) an aggregate of 3,271,470 common shares of Manitou, representing approximately 15% of the issued and outstanding common shares of Manitou (on an undiluted basis), for an aggregate value of approximately $750,000. Goldcorp does not have any present intention to acquire ownership of, or control over, additional securities of Manitou, other than pursuant to the right to maintain its pro rata equity position in Manitou at 15% until such time as Goldcorp has received an aggregate of 4,000,000 common shares of Manitou. It is the intention of Goldcorp to evaluate its investment in Manitou on a continuing basis and such holdings may be increased or decreased in the future. The address of Goldcorp for the purposes of National Instrument 62-103 is 666 Burrard Street, Suite 3400, Vancouver, British Columbia V6C 2X8.
About Manitou Gold Inc.
Manitou is a mineral exploration company focused on the identification, acquisition, exploration and development of properties for the mining of gold and other minerals and metals in and around the Manitou Lake Gold Camp located in Northwestern Ontario.
For further information please contact:
NEITHER THE 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.