American Manganese Closes $5,040,000 Bought Deal Private Placement
Added March 8th, 2011 – Vancouver, British Columbia
American Manganese Inc. (“American Manganese” or the “Company”), (TSX.V: AMY; Pink Sheets: AMYZF), is pleased to announce that it has closed its previously announced private placement pursuant to which Laurentian Bank Securities Inc. (“LBS” or the “Underwriter”), has sold, on a “bought deal” private placement basis, 7,200,000 units of the Company at a price of $0.70 per unit for total gross proceeds of $5,040,000 (the “Offering”).
Each unit consists of one common share of the Company (each a “Common Share”) and one-half of one Common Share purchase warrant (each whole warrant a “Warrant”). Each Warrant entitles the holder to purchase one Common Share at a price of $0.90 per Common Share for eighteen months from the date of issue. If at any time after the period ending four (4) months plus one (1) day after the Closing Date, the 20-day volume weighted average trading price of the Common shares on the TSX Venture Exchange is equal to or greater than $1.10, the Company shall have the right, at its option, to accelerate the time of expiry of the Warrants to a date not less than 30 days following the date of notice being given to each holder of Warrants of such early expiry.
The net proceeds from the Offering will be used by the Company to advance its pre-feasibility study and pilot plant testing; to increase its drilling program; to further environmental studies and for general working capital.
The Company has paid the Underwriter a cash commission equal to 8% of the gross proceeds of the Offering has issued LBS non-transferable warrants (the “Compensation Options”) equal to 8% of the units sold. Each Compensation Option entitles the Underwriter to purchase one common share of the company at a price of CDN$0.70 per Common Share for a period of 24 months from the closing date.
The Offering is subject to final receipt of all necessary regulatory approvals including that of the TSX Venture Exchange. The securities issued in the context of the Offering are subject to a hold period of four months and one day.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless an exemption from such registration is available.
About American Manganese Inc.
American Manganese Inc. is a diversified specialty and critical metal Company focusing on potentially becoming the lowest cost producer of electrolytic manganese from its Arizona Manganese Project.
On behalf of Management
AMERICAN MANGANESE INC.
Larry W. Reaugh
President and Chief Executive Officer