Manitou Gold Announces Closing of $3 Million Financing, Strategic Investments by Alamos Gold Inc. and O3 Mining

SUDBURY, Ontario, Jan. 02, 2020 (GLOBE NEWSWIRE) -- Manitou Gold Inc. (TSX-V: MTU) (the “Company” or “Manitou”) is pleased to announce the closing of a brokered private placement (the "Offering") of 40,000,000 flow-through shares (the "FT shares") of the Company at a price of $0.05 per FT share, and 20,000,000 units (the "Units") of the Company at a price of $0.05 per Unit for aggregate gross proceeds of $3,000,000.

Each Unit is comprised of one common share and one common share purchase warrant, with each warrant being exercisable at a price of $0.05 into one common share for a period of five years from the date of issuance.

The gross proceeds of the FT share portion of the Offering will be used by the Company to incur "Canadian exploration expenses" within the meaning of the Income Tax Act (Canada) related to the Company's 100% owned Goudreau Project located north of Wawa, Ontario on or prior to December 31, 2020 for renunciation to subscribers of FT shares effective December 31, 2019. Proceeds of the Unit portion of the Offering will be used for transaction costs, acquisitions, as well as general and administrative expenses through 2020.  Brokerage fees of 8% cash were paid and an aggregate of 4,800,000 broker warrants were issued to IBK Capital Corp. as consideration for acting as agent in the Offering, with each broker warrant being exercisable to acquire one Unit at a price of $0.05 per Unit for a period of five years from the closing of the Offering.  All of the securities issued and issuable in connection with the Offering are subject to a statutory hold period expiring on May 1, 2020.

Alamos Gold Inc. Investment

Alamos Gold Inc. (“Alamos”) (TSX: AGI) has purchased 36,673,077 common shares in connection with the Offering, representing approximately 19.9% of the issued and outstanding common shares of Manitou immediately post-closing, as calculated on a non-diluted basis. Prior to the Offering, Alamos did not hold any common shares of Manitou. Alamos and Manitou have entered into an Investor Rights Agreement, which provides Alamos with (i) the right to nominate one director to Manitou’s board of directors, (ii) non-dilution rights, such that Alamos can retain its pro-rata ownership in Manitou by participating in any subsequent share issuance, so long as Alamos retains at least 10% ownership of Manitou’s common shares outstanding on a partially diluted basis, and (iii) the right to participate in a joint Exploration Committee which will be established to discuss and advise on exploration strategy for Manitou’s Goudreau Project.