TORONTO, ONTARIO--(Marketwired - Aug 15, 2013) - Mammoth Resources Corp. (TSX VENTURE:MTH) (the "Company") would like to announce a second tranche closing of $163,500 in additional subscriptions for total proceeds of $270,620 on its previously announced private placement financing to include up to 10,000,000 units of the Mammoth's shares (the "Units") at a price of $0.05 per Unit to raise gross proceeds of up to $500,000. Each Unit will be comprised of one common share of the Company and one common share purchase warrant (a "Warrant"). Each Warrant will entitle the holder to acquire an additional common share of the Company for a period of 24 months from the date of issue at a price of $0.08 per common share.
The Company may pay a finder's fee on all or a portion of the private placement. The Company intends to use the proceeds from the private placement for exploration expenditures on its Tenoriba property located in the Sierra Madre Precious Metal Belt in southwestern Chihuahua State, Mexico (refer to the Company's web site www.mammothresources.ca, for a detailed location map) and for general working capital purposes.
The Company also wishes to announce that it has entered into an agreement (the "Agreement") engaging Frontier Merchant Capital Group ("Frontier") to provide investor relations services.
Frontier, which operates out of Toronto, consults with its clients to determine their most pressing corporate issues and help them reach their goals using their strong industry contacts and its unique services. As their partner, Frontier works within any client budget to make sure the incentive program is aligned to help the client reach important corporate goals. Frontier brings financial institutions quality company information and updates directly from their clients, the senior management of public and private companies. This direct information allows their financial market contacts to make more educated investment decisions. Frontier only introduces to their institutional network companies that meet their criterion based on their proprietary profiling methods.
Frontier has been engaged to assist in increasing public awareness by managing Mammoth's communications, marketing endeavors, and ongoing engagement with shareholders, finance professionals, and media contacts. Aside from Frontier's purchase of shares in the Company as mentioned below, Frontier and its principal, Ari Todd, are at arm's length to the Company as at the date hereof.
In the first year of Frontier's engagement, Frontier will be paid a monthly fee of $5,250 and will be granted 300,000 stock options of the Company, exercisable at $0.10 per share. The options will vest at a rate of 25% per quarter from date of grant and are exercisable for a period of one year. The Agreement and the grant of options pursuant to the Agreement are subject to regulatory approval. In addition to the 300,000 options to be granted under the terms of the Agreement, Frontier subscribed for 1,200,000 Units of the Private Placement and an additional 900,000 common shares through a separate transaction.
The private placement is subject to the approval of the TSX Venture exchange. All securities issued pursuant to the private placement will be subject to a statutory hold period of four months and one day.
About Mammoth Resources:
Mammoth Resources (TSX VENTURE:MTH) is a mineral exploration company focused on acquiring and defining precious metal resources in Mexico and other attractive mining friendly jurisdictions in the Americas. The Company has an option to acquire 100% in the Tenoriba Property located in the Sierra Madre Precious Metal Belt in southwestern Chihuahua State, Mexico. The Company continues to seek other option agreements in the Americas on other properties it deems to host above average potential for economic concentrations of precious metals mineralization.
To find out more about Mammoth Resources and to sign up to receive future press releases, please visit the Company's website at www.mammothresources.ca.
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.
Forward-Looking Information: This news release may contain or refer to forward-looking information. All information other than statements of historical fact that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future are forward-looking statements; examples include the listing of its shares on a stock exchange and establishing mineral resources. These forward-looking statements are subject to a variety of risks and uncertainties beyond the Company's ability to control or predict that may cause actual events or results to differ materially from those discussed in such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, undue reliance should not be placed on these forward-looking statements due to the inherent uncertainty therein.