Cantex Closes First Tranche of Private Placement
CANTEX CLOSES FIRST TRANCHE OF
PRIVATE PLACEMENT
KELOWNA, BC
,
April 28, 2023
/CNW/ -
Cantex Mine Development Corp.
(TSXV: CD) (the
"Company") announces that, further to its news release of
April 17, 2023
announcing a private
placement (the "Offering"), the Company has closed the first tranche of the Offering ("the Tranche")
and has received
$1,268,500
by the issuance of 1,601,351 flow through units (the "FT Units") and
2,112,500 non flow-through units (the "Units"). FT Units were issued at
$0.37
per FT Unit and Units
were issued at
$0.32
per Unit; each FT Unit is comprised of a flow through share and one-half of a
non-flow through warrant and each Unit is comprised of one non-flow through share and one-half of
a warrant. Each whole warrant entitles the holder to acquire one common share of the Company at
a price of
$0.45
for a term of two years from closing.
Proceeds from the Tranche 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 is looking forward to
closing a second tranche at a later date of up to
$5 million
.
The Company was charged
$6,475
in finders fees in connection with the Tranche and issued 7,000
finders warrants; the finders warrants have the same terms and conditions as the warrants issued in
the Offering.
The securities issued in the Offering are subject to a four month hold period, expiring on
August 29,
2023
.
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 1,562,000 Units and
1,351,351 FT Units for a total subscription price of
$1,000,000
.
Vernon Frolick
, a Director of the
Company, subscribed for 31,250 Units for a total subscription price of
$10,000
. Both BC Ltd and Mr
Frolick acquired the Units and FT Units for investment purposes. The Offering and the acceptance of
the subscription by BC Ltd and Mr Frolick was approved by unanimous resolution of the board of
directors of the Company with Dr. Fipke and Mr. Frolick declaring their interests 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 and Mr Frolick 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.
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For further information:
Cantex Mine Development Corp, Tel: +250-860-8582, Email:
CO: Cantex Mine Development Corp.
CNW 21:38e 28-APR-23