Cantex Mine Development closes C$5.36 million private placement

Cantex Mine Development Corp. announces that, further to its news release of March 30, 2022 announcing a private placement (the “Offering”), the Company has closed the Offering and has received $5,360,032 by the issuance of 10,052,737 flow through units (the “FT Units”) and 4,812,475 non flow-through units (the “Units”).

FT Units were issued at $0.38 per FT Unit and Units were issued at $0.32 per Unit; each FT Unit is comprised of a flow through share and one non-flow through warrant (the “Warrants”) and each Unit is comprised of one non-flow through share and one Warrant.  Each Warrant entitles the holder to acquire one common share of the Company at a price of $0.48 for a term of two years from closing.

Proceeds from the Offering will be used to fund the upcoming drill program on the Company’s North Rackla Project in the Yukon and for general working capital. The Company was charged $342,862 in finders fees in connection with Offering.  Of this, $75,320 was paid in cash, with the remaining $267,542 in fees settled with the issuance of 836,069 Units priced at a deemed price of $0.32/Unit.  The Company also issued 1,054,821 finder warrants on substantially the same terms as the Warrants.

Multilateral Instrument

The securities issued in the Offering are subject to a four month hold period expiring on August 2, 2022. Final acceptance of the Offering by the TSX Venture Exchange (the “Exchange”) remains subject to the Company making certain filings with the Exchange.

0974052 B.C. Ltd. (“BC Ltd”), a company which Dr. Charles Fipke, the Chairman and a control person of the Company exercises control and direction over, subscribed for 781,250 Units for a total subscription price of $250,000.

BC Ltd acquired the Units for investment purposes. The Offering and the acceptance of the subscription by BC Ltd was approved by unanimous resolution of the board of directors of the Company with Dr. Fipke declaring his interest in the resolution and abstaining from voting. There was no formal valuation of the Company done in connection with the Offering nor has there been such a formal valuation in the past 24 months.

The Company relied upon the exemptions contained in Section 5.5(b) and 5.7(b), of Multilateral Instrument 61-101 (“MI 61-101”) to avoid the formal valuation and shareholder approval requirements of MI 61-101. For the purposes of Section 5.5(b), the Company does not have any securities listed on any of the stock exchanges set out in Section 5.5(b) and for the purposes of Section 5.7(b) the exemption was available as the consideration paid for the Units subscribed for by BC Ltd was less than $2,500,000.

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