Monday, October 17, 2011

Physical Silver being used in Junior Miner Private Placement

Maya Gold & Silver Announces 6.3M CAD Private Placement

Maya Gold and Silver is using physical silver as part of a financing deal for private placement.  Something rarely seen in any financing deal with a junior miner.

MONTREAL, QUEBEC--(Marketwire - Oct. 14, 2011) - Maya Gold & Silver Inc. ("Maya" or the "Company") (TSX VENTURE:MYA) announces its intention to complete a non-brokered private placement of a minimum of 35 Units (3,150,000 CA) and a maximum of 70 Units (6,300,000 CA). Each Unit at a price of 90,000 CA (the "Offering"); is comprised of (i) 300,000 common shares of the Corporation, at 0.30 CA per share (the "Unit Shares"); and (ii) two silver ingots of 10 kg each (the "Silver ingots"), to be delivered by the Corporation on or prior to December 31, 2013; OR 150,000 common share purchase warrants (the "Warrants").
Each Warrant will entitle the holder thereof to purchase one common share of the Corporation at an exercise price of 0.70 CA, at any time on or before 5:00 p.m. (Montréal time) on April 30, 2013 (the common shares issuable in respect of the Warrants, the "Warrant Shares"). The Warrants will be subject to an accelerated expiry if, following the trade restriction period of four months and one day from the Closing Date (as hereinafter defined), the weighted average trading price (as such term is defined in the TSX Venture Exchange Policies) of the common shares of the Corporation is equal to or greater than 1.00 CA for any 20 consecutive trading days. In that event, the holder will be given notice that the Warrants will expire within 30 days following the date of such notice. The Warrants may be exercised by the holder during the 30-day-period between the notice and the accelerated expiry date of the Warrants. The Unit Shares, the Silver Ingots and the Warrants are hereinafter collectively referred to as the "Offered Securities").

It is not anticipated that any new insiders will be created, nor that a change of control will occur as a result of the private placement.
The private placement is subject to regulatory approvals, including final approval by the TSX Venture Exchange. All of the securities issued in connection with the financing will be subject to a four month hold period from the date of issue.
The proceeds from the private placement will be use to fulfill initial commitments with regards to the acquisition of the Zgounder silver Mine and other projects of the Corporation in Morocco, and for general corporate working capital.

Maya Gold & Silver Inc. is a Canadian listed mining Company focused on the exploration and development of gold and silver deposits in Morocco. The Company's shares trade on the TSX Venture Exchange under the symbol "MYA".
Forward-looking statements
Except for statements of historical fact, all statements in this news release, including without limitation, new project acquisitions, future plans and objectives, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate, ; actual results and future events could differ materially from those anticipated in such statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.