Meadow Bay Gold closes $900,000 financing

Meadow Bay Gold (TSE:MAY) (OTCQX:MAYGF) said Tuesday it has closed the first tranche of a non-brokered private placement, for gross proceeds of $900,000.

The offering consists of 1.5 million units priced at 60 US cents each.
Each unit consists of one common share and one share purchase warrant to purchase an additional common share for 75 US cents for a period of two years from closing. 

The company's CEO and director, Robert Dinning, has subscribed for 85,000 units of the financing.

The new funds will be used to conduct exploration work at Meadow Bay Gold's Atlanta Gold mine project in Nevada and to complete the mineral resource estimate and technical report currently being prepared.

A finder's fee of six per cent cash and six per cent finder's warrants will be paid to Canaccord Genuity Corp. on a portion of the gross proceeds, the company said.

In June, Meadow Bay told investors that is discovered porphyry gold mineralisation  near the historic Atlanta open pit mine.

This came after it completed a combined IP/resistivity survey across the project in Lincoln county, Nevada.

The company said at the time this is a distinctly different target than the gold-silver mineralization found within the Atlanta Fault.

Meadow Bay also said the survey findings suggest the porphyry is larger than previously interpreted and extends further to the north.