Mexican Gold's Strategic Private Placement: Fueling Growth and Maintaining Financial Health

Mexican Gold Mining Corp. (Mexican Gold) has announced a non-brokered private placement offering of up to 4,000,000 units (Units) at a price of $0.04 per Unit, aiming to raise gross proceeds of up to CAD $160,000.00. The Company plans to use the funds strategically to support its growth and maintain financial health. Let's delve into the details and explore the implications of this private placement.

Mexican Gold is a Canadian-based mineral exploration and development company focused on building long-term value through ongoing discoveries and strategic acquisitions of prospective precious metals and copper projects in the Americas. The Company's primary asset is the Las Minas project, located in the core of the Las Minas mining district in Veracruz State, Mexico. This project hosts one of the newest, under-explored skarn systems known in Mexico, presenting a significant opportunity for the Company to create shareholder value.

The Company's planned use of proceeds from the Offering is well-aligned with its strategic objectives and historical capital expenditure and operational expenses. Here's how the funds will be allocated:

1. Claim Fee Payments (16%): Approximately 16% of the net proceeds will be used to fund claim fee payments. This allocation ensures that the Company maintains its exploration rights and continues to have access to the Las Minas project, which is crucial for its long-term growth and success.
2. Annual OTCQB Listing Fees (14%): Around 14% of the net proceeds will be used to fund annual OTCQB listing fees. This allocation demonstrates the Company's commitment to maintaining its listing on the OTCQB, which is essential for increasing visibility and accessing capital markets.
3. Continuing Operations of the Las Minas Project (Remaining Proceeds): The balance of the proceeds will be used to fund continuing operations of the Las Minas project, payment of outstanding invoices, and for general working capital. This allocation reflects the Company's focus on advancing its core asset and maintaining a strong financial position.



Mexican Gold's reliance on the Minimum Price Exception permitted by the TSXV to issue Units at less than $0.05 per Unit could have potential implications for shareholder dilution and the Company's future financing needs. However, the Company confirms that no more than 10% of the proceeds will be used for payments to non-arm's length parties of the Company, nor will any of the proceeds be used to compensate persons conducting investor relations activities. This suggests that the Company is taking steps to ensure that the funds raised are used primarily for the intended purposes.

In conclusion, Mexican Gold's strategic private placement aligns with its long-term growth objectives and historical financial management. By allocating funds to claim fee payments, annual OTCQB listing fees, and continuing operations of the Las Minas project, the Company is demonstrating a balanced approach to financial management and growth. While the reliance on the Minimum Price Exception may have potential implications for shareholder dilution and future financing needs, the Company's commitment to using the funds for the intended purposes is reassuring. As an investor, it is essential to stay informed about the Company's progress and maintain a balanced perspective on the risks and opportunities associated with its growth strategy.