Callinex Mines Announces $1.5 million Private Placement Financing for Exploration Campaign at Pine Bay Project, MB
Callinex Mines Announces $1.5 million Private Placement Financing for
Exploration Campaign at Pine Bay Project, MB
VANCOUVER, BC
,
July 10, 2024
/CNW/ -
Callinex Mines Inc.
(the "Company" or "Callinex") (TSXV: CNX) (OTCQX: CLLXF) pleased to announce a non-brokered
private placement of up to
$1.5 million
(the "
Offering
"). The Offering will be used to fund a drilling campaign at the Company's 100% owned Pine Bay Project to
expand the Descendent discovery and test other high-priority target areas (
see news release dated
May 22, 2024
).
The Offering will consist of (i) up to 400,000 hard dollar units (the "
HD Units
") at a price of
C$1.25
per HD Unit (the "
HD Offering Price
") for gross proceeds of
up to
C$500,000
; and (ii) up to 471,698
Manitoba
flow-through units (the "
FT Units
") at a price of
C$2.12
per FT Unit (the "
MB
FT Offering Price
") for gross
proceeds of up to
$1,000,000
.
Each HD Unit shall consist of one common share and one-half of one transferable common share purchase warrant (each whole such common share purchase
warrant, a "
Warrant
"). Each FT Unit shall consist of one flow-through common share and one-half of one transferrable Warrant to be issued on a non-flow-
through basis. Each Warrant shall be exercisable into one additional common share (a "
Warrant Share
") for two (2) years from closing at an exercise price of
C$2.00
per Warrant Share.
The gross proceeds from the sale of FT Units will be used by the Company 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 Pine Bay Project,
Manitoba
. All
Qualifying Expenditures will be renounced in favour of the subscribers of the Flow-Through Shares effective
December 31, 2024
. The net proceeds from the sale
of the HD Units will be used by the Company for working capital and general corporate purposes.
Closing of the Offering is subject to the acceptance of the TSX Venture Exchange.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in
the United States
. The securities 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 may not be offered
or sold within
the United States
or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such
registration is available.
About Callinex Mines Inc.
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 deposit at its rich VMS Pine Bay Project located near existing
infrastructure in the Flin Flon Mining District. Callinex prepared an indicated mineral resource on the Rainbow deposit of 3.44 Mt grading 3.59% CuEq for 272.4
Mlb CuEq (238.3 Mlb Cu, 56.9 Mlb Zn, 37.6 koz Au, 692.8 koz Ag, 2.3 Mlb Pb), an inferred mineral resource on the Rainbow deposit of 1.28 Mt grading 2.95%
CuEq containing 83.4 Mlb CuEq (72.1 Mlb Cu, 19.5 Mlb Zn, 11.1 koz Au, 222.2
Koz Ag
, 0.8 Mlb Pb) and an inferred mineral resource at the Pine Bay deposit
of 1.0 Mt grading 2.62% Cu containing 58.1 Mlb Cu (see news release dated
July 10, 2023
). 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 (see news release dated
May 14, 2018
). 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), a 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) (see news release dated
October 25, 2021
)
.
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.
Some statements in this news release contain forward-looking information. These statements include, but are not limited to, statements with respect to future
expenditures. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which
may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or
implied by the statements. Such factors include, among others, completing the private placement financing, the ability to complete the proposed drill program
and the timing and amount of expenditures. Except as required under applicable securities laws, Callinex does not assume the obligation to update any
forward-looking statement
.
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For further information:
For additional information, please contact: Callinex Mines Inc., Max Porterfield, President and Chief Executive Officer, Phone: (604)
605-0885, E-mail: [email protected]
CO: Callinex Mines Inc.
CNW 08:30e 10-JUL-24