TORONTO, ON / ACCESSWIRE / December 9, 2020 / First Growth Funds Limited (CSE: FGFL) "(Company") is pleased to announce it has secured an advisory mandate to act as lead manager for ASX listed mining company Magnum Mining and Exploration Limited (MGU). Magnum recently acquired the Buena Vista magnetite iron ore project located in Nevada, United States.
Buena Vista is a significant magnetite mineral resource with over $34 million spent on it over the past decade advancing the project to completed feasibility status in 2011 and 2013. The project has secured all major permits for the long term production of a high grade magnetite concentrate grading +67.5% Fe. Iron ore prices continued to rally and the project is well situated to existing rail, power and port facilities.
Under the terms of the agreement with Magnum, First Growth Funds' advisory business will act as lead manager to raise up to $2M to fund working capital for the Buena Vista magnetite project. First Growth Funds will be entitled to 6% success fee on funds raised and will also participate up to $500,000 in the Placement. Initial interest in the Placement has been strong and it is expected to be oversubscribed.
Subject to shareholder approval, the Placement terms include up to 50,000,000 shares at $0.04 plus each new share will have a 1:2 listed option entitlement (options exercisable at $0.05 on or before 30 September 2022) with the options issued at nil cost.
Magnum share price closed at $0.06 per share and the listed options closed at $0.022, presenting a potential gain of $387,500 plus $120,000 in fees.
First Growth Funds is actively working on new opportunities and will provide further update in due course.
About First Growth Funds Limited
First Growth Funds Limited invests across a broad range of asset classes including listed equities, private equity, blockchain and digital assets. The company also operates an advisory business providing corporate advisory, capital raising and capital markets support to its portfolio. www.firstgrowthfunds.com
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SOURCE: First Growth Funds Limited