Vancouver, BC, May 16, 2016 – Parallel Mining Corp. (the “Company”) (TSX‑V: PAL) announces that, further to its news releases of April 7, 2016, April 26, 2016, May 3, 2016 and May 12, 2016, it wishes to increase the previously announced private placement of units from 12,000,000 units at $0.05 to 16,000,000 units at $0.05 for total gross proceeds of up to $800,000. A total of 2,900,000 units were sold in the first tranche, and a further 13,100,000 units are being offered pursuant to the second tranche. Each unit consists of one common share and one transferable common share purchase warrant, each warrant entitling the holder to acquire one additional common share of the Company at a price of $0.15 per common share in the first year, $0.20 per common share in the second year and $0.25 per common share in the third year.
The Company plans to use the proceeds of the private placement to fund property option obligations and exploration on the Garsay mineral exploration property in Burkina Faso, and for general working capital.
The Company continues to work towards the closing of the previously announced acquisition of 0909189 B.C. Ltd. and its property option rights in Burkina Faso (see the Company’s new release dated April 28, 2015). Due to market conditions, the two parties have agreed to extend the drop dead date of the agreement until June 30, 2016. As the acquisition is currently in progress, the Company reminds the investors who are participating in the private placement that there is no guarantee that the transaction will be consummated and closing of the private placement is not subject to completion of the acquisition. In the event the acquisition does not complete, the use of funds will be reallocated.
The Company confirms that there is no material fact or material change about the Company that has not already been generally disclosed. Closing of the private placement is subject to a number of conditions, including receipt of all necessary approvals, including the approval of the TSX Venture Exchange.
NOT FOR DISTRIBUTION TO THE UNITED STATES OR FOR DISSEMINATION IN THE UNITED STATES
For further information please contact:
President & Chief Executive Officer
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