KELOWNA,
BC, April 1, 2022 /CNW/ - Cantex Mine
Development Corp. (TSXV: CD) (the "Company") 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.
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.
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.