Mineworx Completes First Tranche of Private Placement

Not for Distribution to United States Newswire Services or for Dissemination in the United States

SURREY, British Columbia, June 17, 2020 (GLOBE NEWSWIRE) -- Mineworx Technologies Ltd., (the "Company" or "Mineworx") (TSXV: MWX) (OTCQB: MWXRF) (FSE: YRS WKN: A2DSW3) has closed the first tranche of its previously announced financing for gross proceeds of $540,000. The closing of the first tranche of the offering is subject to all required regulatory approvals, including the acceptance of the TSX Venture Exchange.

Non-Brokered Private Placement

The Company has sold 5,600,000 Units for total gross proceeds of $420,000 Pursuant to the first tranche. Each unit is comprised of one common share of the Issuer (“Share”) and one share purchase warrant (“Warrant”).

The securities issued pursuant to the first tranche are subject to a four month hold period from the date of closing and the Warrants are exercisable to acquire an additional common share at a price of $0.10 expiring 48 months after issuance.

The Warrants are subject to an accelerated expiry stating that if at any time, after the standard 4 month hold period, the closing price of the Company’s common shares on the TSX Venture Exchange exceeds $0.20 for any 10 consecutive days (or closing bid price on days when there are no trades), the warrant holder will be given written notice of such date and issuing a news release announcing such date, the warrants will only be exercisable for a period of 30 days following the date on which such written notice is sent to the subscribers.

Non-Brokered Private Placement of 12% Unsecured Convertible Debentures

The Company has sold 120 Units for total gross proceeds of $120,000 Pursuant to the first tranche. Each Unit consists of: (a) one 12% unsecured convertible debenture (“Debentures”) in the principal amount of $1,000; and (b) 10,000 common share purchase warrants (“Warrants”). The sum of the principal amount (“Principal Amount”) of the Debentures outstanding and all accrued and unpaid Interest shall be due and payable in cash on the date that is two years following the Closing Date (“Maturity Date”).

The securities issued pursuant to the first tranche are subject to a four month hold period from the date of closing and the Warrants are exercisable to acquire an additional common share at a price of $0.12 expiring 24 months after issuance. The Warrants shall have an acceleration provision whereby in the event that the closing price of the common shares listed on the TSX Venture Exchange have traded at $0.25 or higher for a minimum of 10 consecutive trading days (whether or not trading occurs on all such days), the Corporation shall have the right to accelerate the expiry date of the Warrants to 30 days from the date of issuance of a news release by the Corporation announcing the accelerated expiry date.