TSX-V:
CLZ
www.canasil.com
VANCOUVER, BC, Aug. 4, 2020 /CNW/ - Canasil Resources Inc.
(TSXV: CLZ) (Frankfurt: 3CC)
"Canasil" or the "Company") announces closing of a non-brokered
private placement (the "Placement") of 7,827,500 units (the
"Units") at a price of $0.20 per Unit
for total gross proceeds of $1,565,500. The Placement was initially announced
for $1,000,000 on July 17, 2020, and subsequently increased to
$1,500,000 through announcements on
July 21 and July 22, 2020. The closing of the Placement is
subject to final acceptance by the TSX Venture Exchange.
The securities issuable in connection with the private
placement are subject to a hold period expiring four months and one
day after the date of issuance. A finder's fee of 6% for
$21,900 is payable on part of the
proceeds of the Placement.
Bahman Yamini, President and CEO,
commented; "We are very pleased to close this Placement in a
short time after it was announced, and thank all the participating
subscribers and welcome our new shareholders. We are now fully
funded for the planned 2,500-metre drill programs at each of our
Nora and La Esperanza silver-gold
projects in Durango and Zacatecas States, Mexico, for a total of up to 5,000 metres
during the second half of 2020. Drilling is currently in progress
at Nora, and will be followed by La
Esperanza in September/October 2020."
Each Unit consists of one common share of the Company and
one-half of one non-transferable share purchase warrant. Each whole
warrant (a "Warrant") entitles the purchase of one common share of
the Company at a price of $0.25
during the first year, increasing to $0.30 in the second year following the closing of
the Placement. If, commencing after the fourth month after closing,
the closing price of the Company's shares exceeds $0.50 per share for a period of 20 consecutive
trading days (the "Acceleration Trigger Date"), the Company will
have the right to accelerate the expiry date of the Warrants to 30
days after the Acceleration Trigger Date by the issuance of a news
release announcing such acceleration within three trading days of
the Acceleration Trigger Date.
The proceeds of the Placement will be used to fund drill
programs on the Company's silver-gold exploration projects in
Mexico and for working
capital.
About Canasil:
Canasil is a Canadian mineral exploration company with a strong
portfolio of 100% owned silver-gold-copper-lead-zinc exploration
projects in Durango and Zacatecas States, Mexico, and in British Columbia, Canada. The Company's
directors and management include industry professionals with a
track record of identifying and advancing successful mineral
exploration projects through to discovery and further development.
The Company is actively engaged in the exploration of its mineral
properties, and maintains an operating subsidiary in Durango, Mexico, with full time geological and
support staff for its operations in Mexico.
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 news release.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy nor shall there be any sale
of any of the securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful, including any of the
securities in the United States of
America. The securities have not been and will not be
registered under the United States Securities Act of 1933 (the
"1933 Act") or any state securities laws and may not be offered or
sold within the United States or
to, or for account or benefit of, U.S. Persons
(as defined in Regulation S under the 1933
Act) unless registered under the 1933 Act and applicable state
securities laws, or an exemption from such registration
requirements is available.
SOURCE Canasil Resources Inc.
