Canex Closes C$2.5 Million Equity Financing and Welcomes Strategic Investor Michael Gentile, Cfa
CANEX METALS INC.
SUITE 815, 808-4
TH
AVENUE S.W., CALGARY, ALBERTA, T2P 3E8
PH: 403.233.2636 FAX: 403.266.2606
NEWS RELEASE: 22-6 MAY 27, 2022
Trading Symbol: TSX Venture-CANX
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
CANEX CLOSES C$2.5 MILLION EQUITY FINANCING AND WELCOMES STRATEGIC
INVESTOR MICHAEL GENTILE, CFA
Calgary, Alberta - CANEX Metals Inc. (“CANEX” or the “Company”) is pleased to announce
that it has closed it’s previously announced C$2.5 million private placement.
Highlights
• Mr. Michael Gentile, CFA was the lead investor in the financing and owns 10.7%
(partially diluted) of the company.
• Mr. Blair Schultz , a newly appointed director of CANEX also participated in the
financing and owns 5.3% (partially diluted) of the Company.
• Altius Minerals (ALS -T), a founding shareholder of the Company , owns 7. 5% of
CANEX.
• The Company will use the proceeds of the financing to significantly advance drill testing
of the potential for bulk tonnage oxide gold along a recently expanded mineralized
corridor that is now 3.2 kilometres long by up to 500 metres wide at the Gold Range
property.
• Assay results for 28 RC drill holes are pending.
The Company welcomes Mr. Michael Gentile, CFA, as a key shareholder and new insider of
the Company with 10. 7% ownership. Mr. Gentile is considered one of the leading strategic
investors in the junior mining sector, owning significant positions in over 15 small -cap mining
companies. Michael is currently a strategic advisor to Arizona Metals ( TSXV:AMC) and a
director of Northern Superior Resources ( TSXV:SUP), Roscan Gold ( TSXV:ROS), Radisson
Mining Resources ( TSXV:RDS) and Solstice Gold ( TSXV:SGC). Michael recently co- founded
Bastion Asset Management, an investment management firm based out of Montreal, Quebec
and was previously a Senior Portfolio Manager with Formula Growth Limited.
Mr. Blair Schultz , recently appointed to the board of Directors of CANEX, also participated in
the financing and currently owns 5.3% of the Company. Mr. Schultz has over 25 years of
capital markets and financial experience including several mining senior executive roles and
brings significant merger and acquisition experience to the board. Among his successes
includes time spent at Klondex Mines (TSX: KDX) where he played an active role with the
Board and Management orchestrating a recapitalization from an insolvent explorer into a
producer, concluding with the sale of Klondex to Hecla Mining Company (NYSE: HL) and is a
founder and principal in Arizona Metals Corp. (TSXV: AMC).
With this financing completed, CANEX will be fully funded to drill test the continuity of the 3.2
kilometer long by up to 500 meter-wide oxide gold mineralized corridor at Gold Range. To date
results from 68 drill holes have been received from the Gold Range project confirming oxide
gold mineralization at 3 zones along the corridor . R ecent soil and rock sampling has further
expanded the target zones and has identified several parallel zones that remain to be drill
tested. CANEX is waiting on the results of 28 reverse circulation drill holes.
Terms of Financing
The non -brokered private placement consisted of 19,230,927 Units (“Common Units”) at a
price of $0.13 per Common Unit for gross proceeds of $2,500,020.51.
Each Common Unit consisted of one common share and one -half of one common share
purchase warrant. Each whole common share purchase warrant entitles the holder to
purchase one common share at a price of $0.18 per share for a period of two years following
closing or until May 27, 2024. After a 6 month, non-callable period the warrants will be subject
to acceleration at the Company’s discretion if at any time the Company’s 20 day volume-
weighted average share price trades above 25 cents.
The Units were offered to accredited investors and all securities issued under the offering will
be subject to a hold period of four months plus one day or until September 28, 2022. No
finder fees were paid in connection with the financing. The Company has relied on
exemptions from the formal valuation and minority shareholder approval requirements of MI
61-101 contained in Sections 5.5(a) and 5.7(1)(a) of MI 61- 101 as the fair market value of the
subject matter of the Private Placement does not exceed 25% of the market capitalization of
the Company as calculated in accordance with MI 61-101.
Proceeds of the financing will be used to drill test and further explore the Gold Range Property
and for general working capital.
About Gold Range
The Gold Range project is a new bulk -tonnage oxide- gold targ et located within an
underexplored metamorphic terrain in Northern Arizona. CANEX controls 5 kilometres of
strike length along a highly prospective district scale structure where mineralization is being
defined through surface sampling, mapping, and rever se circulation drilling. The main
exploration target defined by surface work is 3200 metres long by up to 500 metres wide with
multiple subparallel exploration targets identified. The target zone remains open along strike
under basin cover. Drilling by CANEX has returned strong results including 1 g/t gold over
59.5 metres, 1.6 g/t gold over 35.1 metres, 2.2 g/t gold over 24.4 metres, and 0.3 g/t gold over
62.5 metres.
About CANEX Metals
CANEX Metals (TSX.V:CANX) is a Canadian junior exploration company with a new gold
discovery at the Gold Range Project in Northern Arizona, and high silver and gold
mineralization at the Gibson property in British Columbia. CANEX is led by an experienced
management team which has made three notable porphyry and bulk tonnage discoveries in
North America and is sponsored by Altius Minerals ( TSX: ALS) the Company’s largest
shareholder.
Dr. Shane Ebert P.Geo. , is the Qualified Person for CANEX Metals and has approved the
technical disclosure contained in this news release.
“Shane Ebert”,
Shane Ebert
President/Director
For Further Information Contact:
Shane Ebert at 1.250.964.2699 or
Jean Pierre Jutras at 1.403.233.2636
Web: http://www.canexmetals.ca
Neither the TSX Venture E xchange 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.
Except for the historical and present factual information contained herein, the matters set forth in this news release, including words such as
“expects”, “projects”, “plans”, “anticipates” and similar expressions, are forward-looking information that repr esents management of CANEX
Metals Inc. internal projections, expectations or beliefs concerning, among other things, future operating results and various components
thereof or the economic performance of CANEX. The projections, estimates and beliefs contai ned in such forward- looking statements
necessarily involve known and unknown risks and uncertainties, which may cause CANEX’s actual performance and financial results in future
periods to differ materially from any projections of future performance or results expressed or implied by such forward- looking statements.
These risks and uncertainties include, among other things, those described in CANEX’s filings with the Canadian securities authorities.
Accordingly, holders of CANEX shares and potential investor s are cautioned that events or circumstances could cause results to differ
materially from those predicted. CANEX disclaims any responsibility to update these forward-looking statements.