KELOWNA,
BC, Nov. 18, 2022 /CNW/ - Cantex Mine
Development Corp. (TSXV: CD) (the "Company") announces that,
further to its news release of November 15,
2022 announcing a private placement (the "Offering"), the
Company has closed the Offering and has received $1,605,040 by the issuance of 5,203,852 flow
through units (the "FT Units") and 800,000 non flow-through units
(the "Units"). FT Units were issued at $0.27 per FT Unit and Units were issued at
$0.25 per Unit; each FT Unit is
comprised of a flow through share and one-half of a non-flow
through warrant and each Unit is comprised of one non-flow through
share and one-half of a warrant. Each whole warrant entitles
the holder to acquire one common share of the Company at a price of
$0.35 for a term of two years from
closing.
Proceeds from the Offering will be used to fund the upcoming
drill program on the Company's North Rackla Project in the
Yukon and for general working
capital.
The Company was charged $98,353 in
finders fees in connection with the Offering. Of this,
$17,713 was paid in cash, with the
remaining $80,640 in fees settled
with the issuance of 322,560 Units priced at $0.25/Unit. An additional 375,200 in
finders warrants were issued; the finders warrants have terms and
conditions of the warrants issued in the Offering.
The securities issued in the Offering are subject to a four
month hold period, expiring on March 19,
2023.
0974052 B.C. Ltd. ("BC Ltd"), a
company over which Dr. Charles
Fipke, the Chairman and a control person of the Company
exercises control and direction over, subscribed for 400,000 Units
for a total subscription price of $100,000. Element 29 Ventures Ltd. ("Element"), a
company over with Chad Ulansky,
President and CEO of the Company exercised control and direction
over, subscribed for 200,000 Units for a total subscription price
of $50,000. Both BC Ltd and
Element acquired the Units for investment purposes. The Offering
and the acceptance of the subscription by BC Ltd and Element was
approved by unanimous resolution of the board of directors of the
Company with Dr. Fipke and Mr. Ulansky declaring their interests in
the resolution and abstaining from voting. There was no formal
valuation of the Company done in connection with the Offering nor
has there been such a formal valuation in the past 24 months. The
Company relied upon the exemptions contained in Section 5.5(b) and
5.7(b), of Multilateral Instrument 61-101 ("MI 61-101") to avoid
the formal valuation and shareholder approval requirements of MI
61-101. For the purposes of Section 5.5(b), the Company does not
have any securities listed on any of the stock exchanges set out in
Section 5.5(b) and for the purposes of Section 5.7(b) the exemption
was available as the consideration paid for the Units subscribed
for by BC Ltd and Element was less than $2,500,000.
Signed,
Chad Ulansky
Chad Ulansky
President and CEO
FORWARD LOOKING STATEMENTS: Certain of the statements and
information in this press release constitute "forward-looking
statements" or "forward-looking information", including statements
regarding the expected use of proceeds of the private placement.
Further, any statements or information that express or involve
discussions with respect to predictions, expectations, beliefs,
plans, projections, objectives, assumptions or future events or
performance (often, but not always, using words or phrases such as
"expects", "anticipates", "believes", "plans", "estimates",
"intends", "targets", "goals", "forecasts", "objectives",
"potential" or variations thereof or stating that certain actions,
events or results "may", "could", "would", "might" or "will" be
taken, occur or be achieved, or the negative of any of these terms
and similar expressions) are not statements of historical fact and
may be forward-looking statements or information. The
Company's forward-looking statements and information are based on
the assumptions, beliefs, expectations and opinions of management
as of the date of this press release, and other than as required by
applicable securities laws, the Company does not assume any
obligation to update forward-looking statements and information if
circumstances or management's assumptions, beliefs, expectations or
opinions should change, or changes in any other events affecting
such statements or information. For the reasons set forth above,
investors should not place undue reliance on forward-looking
statements and information.
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.
SOURCE Cantex Mine Development Corp.