Muzhu Mining closes $273,200 first tranche of placement

Jun 30, 2022

2022-06-29 17:33 ET – News Release

Mr. Donald Baxter reports

MUZHU MINING CLOSES FIRST TRANCHE OF PRIVATE PLACEMENT FOR $273,000

Muzhu Mining Ltd. has closed the first tranche of its private placement that was first announced on May 5, 2022. The closing of the first tranche was for 2,276,667 units at a price of $0.12 per unit (the “Units”) for gross proceeds of $273,200.04. Each Unit consists of one common share in the capital of the company and one-half of one common share purchase warrant (each whole common share purchase warrant, a “Warrant”). Each Warrant entitles the holder thereof to acquire one common share of the Company at a price of $0.20 until June 29, 2023.

Donald Baxter, Muzhu Mining’s CEO commented, “it is good to see the participation and interest in the financing and proceeds from the first tranche will go towards marketing through Market One Media Group, work to be performed on the XWG Silver project in China led by Mr. Anthony Tam, Vice President of China Operations, and towards working capital.”

The participation by Donald Baxter in the Private Placement constitutes a “related party transaction” pursuant to Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company intends to rely on the exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in Section 5.5(b) and Section 5.7(1)(b) of MI 61-101, respectively, on the basis that (i) no securities of the Company are listed or quoted on any of the markets specified in Section 5.5(b) of MI 61-101, and (ii) the fair market value of the securities issued to Mr. Baxter pursuant to the Private Placement does not exceed $2,500,000, along with the other applicable circumstances contained in section 5.7(1)(b) of MI 61-101.

Muzhu Mining Ltd. is a Canadian publicly traded exploration company with a portfolio of prospective projects at various stages of development. Muzhu currently holds a 100% interest in the Sleeping Giant South Project, located in the Abitibi Greenstone Belt, approximately 75km South of Matagami, Quebec. As well, Muzhu has executed an option agreement to acquire up to 80% of the Silver, Zinc, Lead XWG Property in the Henan Province of China.

We seek Safe Harbor.

https://www.muzhumining.ca/