Callinex Announces Closing of Upsized $9.4 Million Financing
CALLINEX ANNOUNCES CLOSING OF
UPSIZED $9.4 MILLION FINANCING
/NOT FOR DISTRIBUTION TO
UNITED STATES
NEWS WIRE SERVICES OR FOR
DISSEMINATION IN
THE UNITED STATES
./
VANCOUVER, BC
,
March 6, 2023
/CNW/ -
Callinex
Mines Inc.
(the "
Company
" or "
Callinex
")
(TSXV: CNX) (OTCQX: CLLXF) is pleased to announce that it has closed the previously announced
brokered private placement offering (the "
Offering
") for gross proceeds of approximately
$9.4
million
, including the partial exercise of the over-allotment. The Offering was conducted by Research
Capital Corporation as lead agent and sole bookrunner, on behalf of a syndicate of agents, including
Beacon Securities Limited and Clarus Securities Inc. (collectively, the "
Agents
").
Max Porterfield
, President and CEO stated, "The Company is now fully funded and focused on
expanding the high-grade copper, gold, silver and zinc rich Rainbow and Alchemist discoveries at the
Company's Pine Bay Project in
Manitoba
. We're grateful for the support from new and existing
shareholders in this financing which allows us to continue our mission of driving shareholder value
through discovery."
In connection with the Offering, the Company issued:
a) 1,120,366 units of the Company (the "
Units
") at a price of
$3.15
per Unit. Each Unit
consists of one common share in the capital of the Company (a "
Common Share
") and one-
half of one Common Share purchase warrant (each whole warrant, a "
Warrant
").
b) 1,036,900 flow-through units of the Company (the "
FT Units
") at a price of
$5
.67 per FT
Unit. Each FT Unit consists of one Common Share that will qualify as "flow-through shares"
within the meaning of subsection 66(15) of the
Income Tax Act
(
Canada
) (the "
Tax Act
") and
one-half of one Warrant.
Each Warrant shall entitle the holder thereof to purchase one Common Share (a "
Warrant Share
")
at an exercise price of
$4
.05 per Warrant Share at any time up to two (2) years following the
Closing (as defined herein). Provided that if, at any time four months and one day after the date of
issuance and prior to the expiry date of the Warrants, the volume weighted average trading price of
the Common Shares on the TSX Venture Exchange ("
Exchange
"), or other principal exchange on
which the Common Shares are listed, is greater than
$7.87
for 15 consecutive trading days, the
Company may, within 10 business days of the occurrence of such event, deliver a notice to the
holders of Warrants accelerating the expiry date of the Warrants to the date that is 30 days
following the date of such notice (the "
Accelerated Exercise Period
"). Any unexercised Warrants
shall automatically expire at the end of the Accelerated Exercise Period.
The net proceeds from the sale of Units will be used for the Company's ongoing exploration drilling
program, working capital requirements and other general corporate purposes. The gross proceeds
from the sale of FT Units will be used for exploration expenses on the Company's Pine Bay project
located within the Flin Flon Mining District of
Manitoba
.
The securities issued under the Offering will be subject to restrictions on resale expiring
July 7,
2023
.
The Company will renounce such Canadian Exploration Expenses to the purchasers of the FT Units
with an effective date of no later than
December 31, 2023
.
In connection with the Offering, the Agents received an aggregate cash fee of
$372,278
and the
Agents were granted 93,418 non-transferable compensation warrants (the "
Compensation
Warrants
"). Each Compensation Warrant will entitle the holder thereof to purchase one Common
Share at an exercise price of
$4.05
per Common Share for a period of two (2) years following the
closing of the Offering. In addition, the Agents received an aggregate advisory fee of
$84,000
and
16,930 advisory broker warrants on the same terms as the Compensation Warrants.
The securities described herein have not been, and will not be, registered under the United States
Securities Act of 1933, as amended (the "
U.S. Securities Act
"), or any state securities laws, and
accordingly, may not be offered or sold within
the United States
except in compliance with the
registration requirements of the U.S. Securities Act and applicable state securities requirements or
pursuant to exemptions therefrom. This press release does not constitute an offer to sell or a
solicitation to buy any securities in any jurisdiction.
About the Company
Callinex Mines Inc. (TSXV: CNX) (OTCQX: CLLXF) is advancing its portfolio of base and precious
metals rich deposits located in established Canadian mining jurisdictions. The focus of the portfolio is
highlighted by the rapidly expanding Rainbow and Alchemist deposits at its rich VMS Pine Bay
Project located near existing infrastructure in the Flin Flon Mining District. The second asset in the
portfolio is the Nash Creek Project located in the VMS-rich Bathurst Mining District of
New
Brunswick
. A 2018 PEA generates a strong economic return with a pre-tax IRR of 34.1% (25.2%
post-tax) and NPV8% of
$230 million
(
$128 million
post-tax) at
$1.25
Zinc. The third asset, 100%
owned Point Leamington Deposit in
Newfoundland
, is located in one of the richest VMS and Gold
Districts in
Canada
. Callinex prepared a pit-constrained Indicated Mineral Resource of 5.0 Mt
grading 2.5 g/t AuEq for 402 koz AuEq (145.7 koz gold, 60.0 Mlb copper, 153.5 Mlb zinc, 2.0 Moz
silver, 1.5 Mlb lead), an pit-constrained Inferred Mineral Resource of 13.7 Mt grading 2.24 g/t AuEq
for 986.5 koz AuEq (354.8 koz gold, 110.2 Mlb copper, 527.3 Mlb zinc, 6.2 Moz silver, 7.0 Mlb lead)
and an out-of-pit Inferred Mineral Resource of 1.7 Mt grading 3.06 g/t AuEq for 168.5 koz AuEq
(65.4 koz gold, 13.3 Mlb copper, 102.9 Mlb zinc, 1.4
Moz Ag
, 2.6 Mlb lead).
Disclaimer for Forward-Looking Information
Neither the 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 statements
This news release contains certain "forward looking statements" and certain "forward-looking
information" as defined under applicable Canadian and U.S. securities laws. Forward-looking
statements and information can generally be identified by the use of forward-looking terminology
such as "may", "will", "should", "expect", "intend", "estimate", "anticipate", "believe", "continue",
"plans" or similar terminology. The forward-looking information contained herein is provided for the
purpose of assisting readers in understanding management's current expectations and plans
relating to the future. These forward
–
looking statements or information relate to, among other
things: the use of proceeds of the Offering.
Forward-looking information is subject to known and unknown risks, uncertainties and other factors
that may cause the actual actions, events or results to be materially different from those expressed
or implied by such forward-looking information, including but not limited to: the requirement for
regulatory approvals; enhanced uncertainty in global financial markets as a result of the current
COVID-19 pandemic; unquantifiable risks related to government actions and interventions; stock
market volatility; regulatory restrictions; and other related risks and uncertainties.
Forward-looking information are based on management of the parties' reasonable assumptions,
estimates, expectations, analyses and opinions, which are based on such management's
experience and perception of trends, current conditions and expected developments, and other
factors that management believes are relevant and reasonable in the circumstances, but which
may prove to be incorrect.
The Company undertakes no obligation to update forward-looking information except as required
by applicable law. Such forward-looking information represents management's best judgment
based on information currently available. No forward-looking statement can be guaranteed and
actual future results may vary materially. Accordingly, readers are advised not to place undue
reliance on forward-looking statements or information.
SOURCE
Callinex Mines Inc.
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For further information:
Callinex Mines Inc., Max Porterfield, President and Chief Executive
Officer, Phone: (604) 605-0885, E-mail: [email protected]
CO: Callinex Mines Inc.
CNW 10:54e 06-MAR-23