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SERVICES OR DISEMMINATION IN THE UNITED
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VANCOUVER, BC, Feb. 25, 2021 /CNW/ - Callinex Mines
Inc. (TSX-V: CNX) ("Callinex" or the
"Company") is pleased to announce that the Company has
closed its oversubscribed private placement financing by raising a
total of $8,888,888 (the
"Offering"). Under the Offering, the Company issued
(i) 625,002 hard dollar units (the "HD Units") at a price of
C$4.00 per HD Unit (the "HD
Offering Price") for gross proceeds of C$2,500,008; (ii) 125,000 New Brunswick flow-through units (the "NB
FT Units") at a price of $5.52
per NB FT Unit (the "NB FT Offering Price") for gross
proceeds of $690,000; and (iii)
890,450 Manitoba flow-through
units (the "MB FT Units") at a price of C$6.40 per MB FT Unit (the "MB FT
Offering Price") for gross proceeds of C$5,698,880.
Max Porterfield, President and
CEO stated, "The Company is now fully funded and focused on
expanding the high-grade copper, gold, silver and zinc rich Rainbow
Discovery at the Company's Pine Bay Project in Manitoba. Two drill rigs have commenced the
budgeted 30,000-meter drilling campaign in Manitoba and plans are underway to expand the
two near surface silver discoveries in New Brunswick with a drilling campaign in the
coming months. We're grateful for the support from new and
existing shareholders in this financing which allows us to continue
our mission of driving shareholder value through
discovery."
Each HD Unit consists of one common share and one-half of one
transferable common share purchase warrant (each whole such common
share purchase warrant, a "Warrant"). Each NB FT Unit
consists of one flow-through common share and one-half of one
transferable Warrant to be issued on a non-flow-through basis. Each
MB FT Unit consists of one flow-through common share and one-half
of one transferrable Warrant to be issued on a non-flow-through
basis. Each Warrant shall be exercisable into one additional
common share (a "Warrant Share") at an exercise price of
C$6.00 per Warrant Share until
February 25, 2024.
The Warrants will be subject to an acceleration clause whereby
if at any time four months after the date of issuance and prior to
the expiry of the Warrants the volume-weighted average trading
price of the common shares exceeds C$8.00 for a period of 15 consecutive trading
days, the Company is entitled, as its option, to accelerate the
expiry date of the Warrants by delivering written notice to the
holders of the Warrants, to a date that is not less than 30 days
after such notice is given.
Clarus Securities Inc. acted as lead agent and bookrunner, on
behalf of a syndicate of agents that included PI Financial Corp.
and Stifel Nicolaus Canada Inc. The Company paid the
syndicate of agents a cash commission of $276,268 and issued a total of 31,506 share
purchase warrants ("Compensation Options"), with each
Compensation Option exercisable at $6.00 per share expiring on February 25, 2023.
The securities issued under the Offering will be subject to
restrictions on resale expiring on June 26,
2021.
The gross proceeds from the sale of NB FT Units and the MB FT
Units will be used by the Company to incur eligible "Canadian
exploration expenses" that will qualify as "flow-through mining
expenditures" as such terms are defined in the Income Tax Act
(Canada) (the "Qualifying
Expenditures") related to the Company's projects in
Canada. All Qualifying
Expenditures will be renounced in favour of the subscribers of the
Flow-Through Shares effective December 31,
2021. The net proceeds from the sale of the HD Units will be
used by the Company for working capital and general corporate
purposes.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy any of the securities in
the United States. The securities
have not been and will not be registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities Act") or
any state securities laws and may not be offered or sold within
the United States or to U.S.
Persons unless registered under the U.S. Securities Act and
applicable state securities laws or an exemption from such
registration is available.
About Callinex Mines Inc.
Callinex Mines is advancing its portfolio of base and precious
metals rich deposits located in established Canadian mining
jurisdictions. The portfolio is highlighted by the rapidly
expanding Rainbow discovery at its Pine Bay project located near
existing infrastructure in the Flin
Flon mining district. Additionally, Callinex has emerging
near-surface silver discoveries at its Nash Creek project located in the Bathurst mining district of New Brunswick. A 2018 preliminary economic
assessment on the company's Bathurst projects outlined a mine plan that
generates a strong economic return with a pretax internal rate of
return of 34.1 per cent (25.2 per cent post-tax) and a net present
value 8 per cent of $230-million
($128-million post-tax).
Callinex trades on the TSX.V under the symbol "CNX".
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.
Some statements in this news release contain forward-looking
information. These statements include, but are not limited to,
statements with respect to future expenditures. These statements
address future events and conditions and, as such, involve known
and unknown risks, uncertainties and other factors which may cause
the actual results, performance or achievements to be materially
different from any future results, performance or achievements
expressed or implied by the statements. Such factors include, among
others, the ability to complete the proposed drill program and the
timing and amount of expenditures. Except as required under
applicable securities laws, Callinex does not assume the obligation
to update any forward-looking statement.
SOURCE Callinex Mines Inc.