Cantex Mine Development Corp. Cantex Mine Development Corp. 203 – 1634 Harvey Ave.
Cantex Mine Development Corp. 203 – 1634 Harvey Ave. Kelowna, BC V1Y 6G2 250.860.8582 www.cantex.ca
CANTEX ANNOUNCES CLOSING OF $12 MILLION PRIVATE PLACEMENT OF FLOW- THROUGH SHARES
Kelowna, BC –August 22, 2019 – Cantex Mine Development Corp. (the "Company") (TSXV: CD). Further to its news release of August 1, 2019, the Company is pleased to announce the closing (the “Closing”) of its “bought deal” private placement (the “Offering”) resulting in gross proceeds of $12,005,160, which includes the exercise in full of the underwriters’ option of $2,000,000. At Closing the Company issued 1,083,000 charity flow-through common shares at a price of $6.52 per share and a further 824,000 flow-through common shares at a price of $6.00 per share. All flow-through common shares issued under the Offering are subject to a four month hold period expiring December 23, 2019.
In connection with the Offering, the Company paid a cash commission to the co-lead underwriters of the Offering, being Canaccord Genuity Corp. and Leede Jones Gable Inc., equal to 6% of the gross proceeds of the Offering (other than in respect of sales to certain president’s list subscribers, which a cash commission of 3% was paid).
Gross proceeds from the Offering will be used by the Company to incur eligible “Canadian exploration expenses” that will quality as “flow-through mining expenditures”, as such terms are defined in the Income Tax Act (Canada). All qualifying expenditures will be renounced in favour of the subscribers of the flow-through common shares effective December 31, 2019. The Offering is subject to final acceptance of the TSX Venture Exchange.
For further information:
Cantex Mine Development Corp, Tel: +250-860-8582; Email: [email protected]
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.
Cautionary Note Regarding Forward‐Looking Information
This news release contains "forward‐looking information" within the meaning of the applicable Canadian securities legislation that is based on expectations, estimates, projections and interpretations as at the date of this news release. The information in this news release about the Offering, the use of the proceeds from the Offering, the final acceptance of the TSX Venture Exchange, if at all; the tax treatment of the flow-through common shares; the timing of the renounce of the qualifying expenditures in favor of the subscribers, if at all, and any other information herein that is not a historical fact may be "forward‐looking information". Any statement that involves discussions with respect to predictions, expectations, interpretations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "interpreted", "management's view", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward‐looking information and are intended to identify forward‐looking information. This forward‐ looking information is based on reasonable assumptions and estimates of management of the Company, at the time such assumptions and estimates were made, and involves known and unknown risks, uncertainties or other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward‐looking information. Such factors include, among others, risks relating to the Offering; volatility in the trading price of common shares of the Company; ability of the Company to complete further exploration activities; property interests; the results of exploration activities; risks relating to mining activities; the global economic climate; metal prices; dilution; environmental risks changes in the tax and regulatory regime; and community and non‐governmental actions. Although the forward‐looking information contained in this news release is based upon what management believes, or believed at the time, to be reasonable assumptions, the Company cannot guarantee shareholders and purchasers of securities of the Company that actual results will be consistent with such forward‐looking information, as there may be other factors that cause results not to be as anticipated, estimated or intended, and neither Company nor any other person assumes responsibility for the accuracy and completeness of any such forward looking information. Company does not undertake, and assumes no obligation, to update or revise any such forward looking statements or forward‐ looking information contained herein to reflect new events or circumstances, except as may be required by law.