Resources

Transactions

Manitou Gold Inc. Completes Initial Public Offering

Published: 03/21/2010

By Jennifer Campbell, Jay Goldman, Michael Noonan

On March 4, 2010, Manitou Gold Inc. completed its initial public offering pursuant to which it has issued an aggregate of 8,000,000 units at a price of $0.25 per Unit to raise aggregate gross proceeds of $2,000,000, all pursuant to a final prospectus dated February 16, 2010. Each unit consists of one common share of Manitou and one-half of one common share purchase warrant. Each whole warrant entitles the holder thereof to acquire one additional common share of Manitou at an exercise price of $0.40 until March 4, 2013.

Canaccord Financial Ltd. acted as agent in the Offering, in connection with which it received compensation warrants equal to 11.25% of the total number of units sold under the Offering. Each compensation warrant entitles the Agent to acquire one common share of Manitou at an exercise price of $0.40 until March 4, 2013. The Agent also received a cash commission of 9% of the gross proceeds of the Offering, with approximately 22% of such commission taken as units. The Agent also elected to receive an aggregate of 80,000 units in satisfaction of its corporate finance fee.

On the same date, Manitou also completed a private placement of an additional 1,000,000 units at a price of $0.25 per unit, sold by Manitou on a non-brokered basis for gross proceeds of $250,000. No fees or commissions were paid in respect of the Private Placement.

Trading of the common shares of Manitou under the symbol "MTU" on the TSX Venture Exchange commenced at the opening of business on Monday, March 8, 2010.

As partial consideration for the sale of Kenwest Mines Limited, Manitou also issued to Goldcorp Inc. an aggregate of 3,271,470 common shares of Manitou, resulting in Goldcorp Inc. holding approximately 15% of the issued and outstanding common shares of Manitou (on an undiluted basis), for an aggregate value of approximately $750,000.

Jay Goldman (Securities and Mining), Jennifer Campbell (Securities and Mining) and Michael Noonan (Securities) of Cassels Brock & Blackwell acted for Manitou Gold Inc.