Cantex Announces $10 Million Private Placement of Flow‐through Shares
CANACCORD GENUITY CORP.
PO Box 10337
2200 – 609 Granville Street
Vancouver, BC V7Y 1H2
T: 604.643.7300
F: 604.643.7606
TF: 800.382.9280
www.canaccordgenuity.com
/ NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES
OR FOR DISSEMINATION IN THE UNITED STATES /
CANTEX ANNOUNCES $10 MILLION PRIVATE PLACEMENT OF FLOW‐THROUGH SHARES
(Kelowna, Canada – August 1, 2019) Cantex Mine Development Corp. (the "Corporation" or
"Cantex") (TSX‐V: CD) is pleased to announce that it has entered into an agreement with
Canaccord Genuity Corp. and Leede Jones Gable Inc. (the “Underwriters”) in connection with a
“bought deal” private placement of an aggregate of 1,588,000 common shares of the
Corporation that will qualify as "flow‐through shares" (within the meaning of subsection 66(15)
of the Income Tax Act (Canada)) ("Flow‐Through Shares") for aggregate gross proceeds of C$10
million (the “Offering”). In connection with the Offering; (i) 921,000 Flow‐Through Shares will
be issued as part of a charity arrangement at an issue price of C$6.52 per Flow‐Through Share
(the “Charity Issue Price”) for gross proceeds of C$6,004,920; and (ii) 667,000 Flow‐Through
Shares will be issued at C$6.00 per Flow‐Through Share (the “FT Issue Price”) for gross proceeds
of C$4,002,000.
In addition, the Underwriters have been granted an option to sell up to that number of an
additional Flow‐Through Shares at the Charity Issue Price and/or the FT Issue Price for additional
gross proceeds of up to C$2,000,000.
The gross proceeds from the Offering will be used by the Corporation 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
Corporation's projects in Canada. All Qualifying Expenditures will be renounced in favour of the
subscribers of the Flow‐Through Shares effective December 31, 2019.
The Offering is expected to close on or about August 21, 2019 and is subject to certain closing
conditions including, but not limited to, the receipt of all necessary approvals including the
conditional listing approval of the TSX Venture Exchange and the applicable securities regulatory
authorities. The Offering is being made by way of private placement in Canada. The securities
issued under the Offering will be subject to a hold period in Canada expiring four months and
one day from the closing date of the Offering. The Offering is subject to final acceptance of the
TSX Venture Exchange.
The Underwriters will receive a cash commission equal to 6.0% of the gross proceeds of the sale
of the Flow‐Through Shares, payable on Closing to the Underwriters (other than in respect of
sales of Flow‐Through Shares to those persons on the “Presidents List” on which the fee shall be
3%).
The securities offered have not been registered under the U.S. Securities Act of 1933, as
amended, and may not be offered or sold in the United States absent registration or an
applicable exemption from the registration requirements. This press release shall not constitute
an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities
in any State in which such offer, solicitation or sale would be unlawful.
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For further information on Cantex, visit www.cantex.ca Or contact: 250‐860‐8582
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 jurisdictions in
which the Flow‐Through Shares are offered or sold; the number of Flow‐Through Shares offered or sold; the gross
proceeds from the Offering; the timing and ability of the Corporation to close the Offering, if at all; the timing and ability
of the Corporation to satisfy the listing conditions of the TSX Venture Exchange, if at all; the tax treatment of the Flow‐
Through 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 Corporation, 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 Corporation 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 Corporation; risks
relating to the ability of the Corporation to obtain required approvals, complete definitive documentation and complete
the Offering on the terms announced; ability of Cantex 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 Corporation cannot guarantee shareholders and prospective purchasers of
securities of the Corporation 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 Corporation nor any other
person assumes responsibility for the accuracy and completeness of any such forward looking information. Corporation
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.