KELOWNA, BC, Oct. 21, 2021 /CNW/ - Cantex Mine
Development Corp. (TSXV: CD) (the "Company") announces that,
further to its news release of October 5,
2021 announcing a private placement (the "Offering"), the
Company has closed the Offering and has received $4,200,000 by the issuance of 8,400,000 flow
through units (the "FT Units") at a price of $0.50 per FT Unit, each FT Unit comprised of a
flow through share and one-half of one non-flow through warrant;
with each whole warrant entitling the holder to acquire one common
share of the Company at a price of $0.65 for a term of two years from closing.
Proceeds from the Offering will be used to fund upcoming drill
programs on the Company's North Rackla Project in the Yukon.
The Company paid $203,400 in
finders fees in connection with Offering.
The securities issued in the Offering are subject to a four
month hold period. This hold period expires February 20, 2022 for 5,220,000 shares issued and
February 22, 2022 for 3,180,000
shares.
0974052 B.C. Ltd. ("BC Ltd"), a
company over which Dr. Charles
Fipke, the Chairman and a control person of the Company
exercises control and direction over, subscribed for 800,000 FT
Units for a total subscription price of $400,000. BC Ltd acquired the FT 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 FT Units
subscribed for by BC Ltd was less than $2,500,000.
Signed,
Chad Ulansky
Chad Ulansky
President and CEO
FORWARD LOOKING STATEMENTS: Certain of the statements and
information in this press release constitute "forward-looking
statements" or "forward-looking information", including statements
regarding the expected use of proceeds of the private placement.
Further, any statements or information that express or involve
discussions with respect to predictions, expectations, beliefs,
plans, projections, objectives, assumptions or future events or
performance (often, but not always, using words or phrases such as
"expects", "anticipates", "believes", "plans", "estimates",
"intends", "targets", "goals", "forecasts", "objectives",
"potential" or variations thereof or stating that certain actions,
events or results "may", "could", "would", "might" or "will" be
taken, occur or be achieved, or the negative of any of these terms
and similar expressions) are not statements of historical fact and
may be forward-looking statements or information. The
Company's forward-looking statements and information are based on
the assumptions, beliefs, expectations and opinions of management
as of the date of this press release, and other than as required by
applicable securities laws, the Company does not assume any
obligation to update forward-looking statements and information if
circumstances or management's assumptions, beliefs, expectations or
opinions should change, or changes in any other events affecting
such statements or information. For the reasons set forth above,
investors should not place undue reliance on forward-looking
statements and information.
Neither 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.
SOURCE Cantex Mine Development Corp.