Callinex Mines Announces $7.7 Million Private Placement Financing
NEWS RELEASE
Callinex Mines Announces $7.7 Million Private Placement Financing
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISEMMINATION IN THE UNITED STATES
VANCOUVER, British Columbia, February 2, 2021 – Callinex Mines Inc. (TSX-V: CNX) (“Callinex”
or the “ Company”) is pleased to announce that the Company has entered into an agreemen t with
Clarus Securities Inc. as lead agent (the “Lead Agent”) and bookrunner (the “Bookrunner”), on behalf
of a syndicate of agents (collectively, the “Agents”), in connection with a marketed best efforts private
placement of up to approximately C$7.7 million (the “Offering”).
The Offering will consist of (i) up to 500,000 hard dollar units (the “HD Units”) at a price of C$4.00 per
HD Unit (the “HD Offering Price”) for gross proceeds of up to C$ 2.0 million; (ii) up to 125,000 New
Brunswick flow-through units (the “ NB FT Units ”) at a price of $5.52 per NB FT Unit (the “ NB FT
Offering Price”) for gross proceeds of $690,000; and (iii) up to 793,750 Manitoba flow-through units
(the “MB FT Units”) at a price of C$ 6.40 per MB FT Unit (the “MB FT Offering Price”) for gross
proceeds of up to C$5.08 million.
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 NB FT Unit
shall consist of one flow-through common share and one-half of one transferable Warrant to be issued
on a non-flow-through basis. Each MB FT Unit shall consist of one flow -through common share and
one-half of one transferrable Warrant to be issued on a non-flow-throuogh basis. Each Warrant shall
be exercisable into one additional common share (a “Warrant Share”) for three (3) years from closing
at an exercise price of C$6.00 per Warrant Share.
The Warrants will be subject to an acceleration cause whereby if at any time four months after the
date of issuance and prior to the expiry of the Warrants the volume-weighted average trading price of
the common shares exceeds C$8.00 for a period of 15 consecutive trading days, the Company is
entitled, as its option, to accelerate the expiry date of the Warrants by delivering written notice to the
holders of the Warrants, to a date that is not less than 30 days after such notice is given.
In addition, the Company has granted the Agents an option, exercisable in whole or in part at any time
prior to closing of the Offering, to offer up to an additional 20% of the Offering on the same terms as
the HD Units and Flow-Through Units.
The Company will pay a cash commission of 6.0% of the gross proceeds of the Offering, other than in
respect of certain purchasers on a president’s list.
The gross proceeds from the sale of NB FT Units and the MB 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 Company's projects in Canada. All Qualifying Expenditures will be
renounced in favour of the subscribers of the Flow-Through Shares effective December 31, 2021. The
NEWS RELEASE
net proceeds from the sale of the HD Units will be used by the Company for working capital and
general corporate purposes.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the
securities in the Unite d 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 is advancing its portfolio of base and pre cious metals rich deposits locat ed in
established Canadian mining jurisdictions. The portfolio is highlighted by the rapidly expanding
Rainbow discovery at its Pine Bay project located near existing infrastructure in the Flin Flon mining
district. Additionally, Callinex has emerging near -surface silver discoveries at its Nash Creek project
located in the Bathurst mining district of New Brunswick. A 2018 preliminary economic assessment on
the company's Bathurst projects outlined a mine plan that generates a strong economic return with a
pretax internal rate of return of 34.1 per cent (25.2 per cent post -tax) and a net present value 8 per
cent of $230-million ($128-million post-tax).
Callinex trades on the TSX.V under the symbol “CNX”.
For Additional Information Please Contact Callinex Mines Inc.:
Max Porterfield
President and Chief Executive Officer
1555-555 West Hastings St.
Vancouver, BC, Canada, V6C 4N6
(604) 605-0885
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 ac tual 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,
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.