MGX Minerals Closes $4.1 Million Second Tranche of Oversubscribed Private Placement

VANCOUVER, BRITISH COLUMBIA / December 21, 2017 / MGX Minerals Inc. (“MGX” or the “Company”) (CSE: XMG / FKT: 1MG / OTC: MGXMF) is pleased to announce that is has closed the second and final tranche of a non-brokered, private placement for 4,079,000 units (“Units“) at a price of $1.00 per Unit for gross proceeds of $4,079,000 (the “Offering”). The aggregate gross proceeds raised under the Offering was $7,137,000 through the issuance of an aggregate of 7,137,000 Units. The Offering was made concurrently with a private placement of flow through units, of which a second and final tranche is also expected to close this week.

Each Unit consists of one common share of the Company (each, a “Share”), and one transferable common share purchase warrant (each whole warrant, a “Warrant”), with each Warrant entitling the holder to acquire one common share of the Company (each, a “Warrant Share”) at a price of CA$1.15 per Warrant Share for a period of 36 months from the closing of the Offering.

The Company will use the proceeds of the Offering for advancement of the Company’s lithium and magnesium assets, including continued investment into extraction equipment and PurLucid, property payments and additional acquisitions, engineering studies, permitting activities, and for general working capital.

In connection with the Offering, the Company paid a finder’s fee to EMD Financial Inc. (“EMD”) equal to a cash payment of 8% of the gross proceeds raised from purchasers of the Units introduced to the Company by EMD, common shares of the Company equal to 4% of the total number of Units sold, and non-transferable warrants equal to 4% of the total number of Units sold under the Offering (the “Finder Warrants”). Each Finder Warrant entitles the holder to purchase one common share at a price of CA$1.15 for a period of 36 months following the closing date.

The securities issued pursuant to the Offering and the other above matters are subject to a hold period of four months and one day.

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