Midnight Sun Mining Corp. Announces Private Placement
Vancouver, British Columbia, October 3, 2016 — Midnight Sun Mining Corp. (the “Company” or “Midnight Sun”) (TSX-V: MMA) announces a non-brokered private placement of up to 8,000,000 units (the “Units”) at a price of $0.10 per Unit for gross proceeds of $800,000 (the “Offering”). Each Unit will consist of one (1) common share (“Common Share”) in the capital of the Company and one (1) Common Share purchase warrant (a “Warrant”). Each Warrant will entitle the holder to purchase one Common Share of the Company for a period of twenty-four months from the closing of the Offering at an exercise price of $0.20. The net proceeds from the Offering will be used by the Company to fund work commitments on its optioned Zambian mineral exploration permits as well as general working capital. The Company intends to close the Offering as soon as practicable.
The Offering, including the future issuance of the Common Shares and Warrants, is subject to the final approval of the TSX Venture Exchange. All securities issued will be subject to a hold period of four months and one day pursuant to applicable securities laws.
Amendment to Option Agreement
Kam Chuen Resource Holdings Ltd. (“Kam Chuen”) has agreed to an amendment to the original Solwezi option agreement (the “Agreement”), whereby the total $3,666,667 of work expenditures originally due to be completed in several tranches, are now due to be completed in totality by December 6, 2018. In exchange for this, Midnight Sun has agreed to immediately issue the remaining 10,000,000 shares due to Kam Chuen under the Agreement. If this share issuance will create a new control position, Midnight Sun will hold a vote of disinterested shareholders as per TSX Venture rules. A material change report is available on www.sedar.com.
ON BEHALF OF THE BOARD
Robert Sibthorpe President & CEO
For further information 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 NEWS RELEASE.
These securities being offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) and may not be offered or sold in the United States or to, or for the benefit of, U.S. persons (as defined in Regulation S under the U.S. Securities Act) absent U.S. registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.