Manganese X Energy Corp. announced a $2.1 million private placement, including a $2 million investment from Eric Sprott. Sprott will subscribe for 57,142,857 Subscription Receipts, making him a new Control Person of the Company, subject to shareholder and TSXV approval. Proceeds will be held in escrow until all necessary approvals are received and will be used primarily to advance the Battery Hill project in New Brunswick, including a pre-feasibility study.
A portion will also be used for general working capital. Due to the use of the Minimum Price Exception permitted by the TSXV, none of the proceeds will be used for payments to non-arm's length parties or for investor relations activities. Upon receipt of all Approvals, each Subscription Receipt will automatically convert into a unit of the Company and one-half (1/2) of one (1) Share purchase warrant, allowing the holder to acquire an additional Share at an exercise price of $0.06 per Warrant Share for a period of 36 months from the date of closing of the Offering