Iron South Closes Private Placement
-NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION TO OR THROUGH US NEWSWIRE SERVICES-
Vancouver, BC / Marketwired / August 22, 2016 / Iron South Mining Corp. (TSX-V: IS, FSE: OAY1 (WKN: A0RK7E), "Iron South" or the "Company") is pleased to announce completion of the non-brokered private placement financing of 30,000,000 units ("Units") for gross proceeds of $1,500,000 announced on July 15, 2016.
Each Unit consists of one common share and one transferrable common share purchase warrant. Each warrant entitles the holder to purchase one additional common share of the Company at $0.10 per share for one year from the date of issue, expiring on August 22, 2017. The Units bear a legend for automatic timed release in three installments: (1) 15% of the Units four (4) months from issue; (2) 35% of the Units six (6) months from issue; and (c) 50% of the Units ten (10) months from issue.
If the volume weighted average price for the Company's shares is $0.25 or greater for a period of 10 consecutive trading days, then the Company may deliver a notice (the "Notice") to the warrantholder that the Warrants must be exercised within twenty (20) days from the date of delivery of such Notice, otherwise the Warrants will expire at 4:30 p.m. (Vancouver time) on the twenty-first (21st) day after the date of delivery of the Notice. The accelerated exercise provision shall not apply until the expiration of the four-month hold period required under Exchange policies and rules, and securities laws that are applicable to the Company, being December 23, 2016.
Finder's fees of $16,100 are payable in cash on a portion of the private placement to parties at arm's length to the Company. In addition, 322,000 non-transferable finder's warrants are issuable (the "Finder's Warrants"). Each Finder's Warrant entitling a finder to purchase one common share at a price of $0.10 per share for one year from the date of issue, expiring on August 22, 2017. The Finder's Warrants also bear the legend for automatic timed release in three installments, as set out above, and are subject to the above accelerated exercise provisions.
The proceeds of the financing will be used for general working capital.
About Iron South Mining Corp.:
Iron South is a Vancouver-based iron exploration company led by an experienced management team. Iron South holds a 100% interest in the Fierro high-grade iron project, located in Rio Negro, Argentina. The project is immediately adjacent to the producing Minera Sierra Grand iron mine, owned by Metallurgical Corporation of China Ltd. Management is continuing to evaluate acquisitions to build its property portfolio with a focus on iron projects with established value and significant upside potential. Iron South is a member of the Grosso Group, a management company specializing in resource exploration since 1993.
ON BEHALF OF THE BOARD
Nikolaos Cacos, President & CEO
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Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Readers are encouraged to refer to the Company's public disclosure documents for a more detailed discussion of factors that may impact expected future results. The Company undertakes no obligation to publicly update or revise any forward-looking statements.
The securities being offered have not been, nor will they be registered under the United States Securities Act of 1933, as amended, or state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. federal and state 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.