Canstar Closes Final Tranche of $2.0M Private Placement
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220 Bay Street TSX-V: ROX
Suite 550
Toronto, ON M5J 2W4 www.canstarresources.com
Canstar Closes Final Tranche of $2.0M Private Placement
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S.
NEWS AGENCIES
Toronto, Ontario – (GlobeNewswire – October 1, 2020) - CANSTAR RESOURCES INC. (TSXV:
ROX) (“Canstar Resources” or the “Company”) is pleased to announce that it has closed the
second and final tranche (the “ Second Tranche ”) of the non -brokered private placement
announced on September 2, 2020 (the “Offering”).
The Second Tranche consisted of the sale of 9,523,810 units (“Units”) at a price of $0.1575 per
Unit for aggregate gross proceeds of $1,500,000. Each unit is composed of one (1) common
share (“Share”) in the capital of the company and one (1) Share purchase warrant (“Warrant”) at
an exercise price of $0.21 per Warrant for a period of two years from the date of issuance.
The first tranche of the Offering, which closed on September 15, 200, consisted of the sale of
4,761,920 units (each a “Part & Parcel Unit”) at a price of $0.105 per Part & Parcel Unit for gross
proceeds of $500,001.60. Each Part & Parcel Unit was comp osed of one (1) Share and one (1)
Warrant.
The Company intends to use the net proceeds raised from the Second Tranche for general
corporate purposes, working capital, and explorat ion expenses on the Company’s properties in
Newfoundland, including Buchan’s/Mary March, Daniel’s Harbour, and Golden Baie.
Frances Kwong, Dustin Small, and Christian Kargl-Simard, directors and/or officers of an insider
of the Company acquired an aggregat e of 385,700 Units in the Second Tranche of the Offering
for aggregate proceeds of approximately $ 60,747.75, which participation constituted a "related
party transaction" as defined under Multilateral Instrument 61-101 Protection of Minority Security
Holders in Special Transactions (“ MI 61 -101”). Such participation is exempt from the formal
valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market
value of the Part & Parcel Units acquired by the insiders, nor the consi deration for the Part &
Parcel Units paid by such insiders, exceed 25% of the Company's market capitalization.
In connection with the closing of the Second Tranche, the Company paid finder fees to eligible
finders of an aggregate of $14,175.00 and 90,000 warrants to purchase Units at a price of $0.1575
per Unit. All securities issued and issuable pursuant to the Offering are subject to the applicable
statutory hold period of four months and one day from the closing. The Offering is subject to the
final approval of the TSX Venture Exchange.
About Canstar Resources Inc.
Canstar Resources is a mineral exploration and development company focused on creating
shareholder value through discovery and develop ment of economic mineral deposits in
Newfoundland and Labrador , Canada . Canstar is in the process of completing an option
agreement to acquire a 100% interest in the Golden Baie Project in south Newfoundland, a large
claim package (660 km 2) with recently discovered, multiple outcropping gold occurrences. The
Company also holds the Buchans-Mary March project and other mineral exploration properties in
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Newfoundland. Canstar Resources is based in Toronto, Canada and is listed on the TSX Venture
Exchange and trades under the symbol ROX-V.
For further information, please contact:
Rob Bruggeman P.Eng., CFA
President & CEO
Email: [email protected]
Phone: 1-416-884-3556
www.canstarresources.com
Forward-Looking Statements
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.
This News Release includes certain "forward-looking statements" which are not comprised of historical facts. Forward-
looking statements include estimates and statements that describe the Company’s future plans, objectives or goals,
including words to the effect that the Company or management expects a stated condition or result to occur. Forward-
looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”,
“would”, “will”, or “plan”. Since forward -looking statements are based on assumptions and addr ess future events and
conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on
information currently available to the Company, the Company provides no assurance that actual results will meet
management’s expectations. Risks, uncertainties and other factors involved with forward -looking information could
cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or
implied by such forward-looking information. Forward looking information in this news release includes, but is not limited
to, the Company’s objectives, goals or future plans, statements, exploration results, potential mineralization, the
estimation of mineral resources, exploration and mine development plans, timing of the commencement of operations
and estimates of market conditions, as well as the anticipated size of the Offering, the Offering price, the anticipated
closing date and the completion of the Offering, the anticipated us e of the net proceeds from the Offering and the
receipt of all necessary approvals. Factors that could cause actual results to differ materially from such forward-looking
information include, but are not limited to failure to identify mineral resources, f ailure to convert estimated mineral
resources to reserves, the inability to complete a feasibility study which recommends a production decision, the
preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required govern mental,
environmental or other project approvals, political risks, inability to fulfill the duty to accommodate First Nations and
other indigenous peoples, uncertainties relating to the availability and costs of financing needed in the future, changes
in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of
projects, capital and operating costs varying significantly from estimates and the other risks involved in the mineral
exploration and development industry, an inability to complete the Offering on the terms or on the timeline as announced
or at all, an inability to predict and counteract the effects of COVID -19 on the business of the Company, including but
not limited to the effects of COVID-19 on the price of commodities, capital market conditions, restriction on labour and
international travel and supply chains, and those risks set out in the Company’s public documents filed on SEDAR.
Although the Company believes that the assumptions and factors used in preparing the forward-looking information in
this news release are reasonable, undue reliance should not be placed on such information, which only applies as of
the date of this news release, and no assurance can be given that such events wil l occur in the disclosed time frames
or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether
as a result of new information, future events or otherwise, other than as required by law.