KELOWNA,
BC, April 28, 2023 /CNW/ - Cantex Mine
Development Corp. (TSXV: CD) (the "Company") announces that,
further to its news release of April 17,
2023 announcing a private placement (the "Offering"), the
Company has closed the first tranche of the Offering ("the
Tranche") and has received $1,268,500
by the issuance of 1,601,351 flow through units (the "FT Units")
and 2,112,500 non flow-through units (the "Units"). FT Units
were issued at $0.37 per FT Unit and
Units were issued at $0.32 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 $0.45 for a term of two
years from closing.
Proceeds from the Tranche 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 is looking forward to closing a second
tranche at a later date of up to $5
million.
The Company was charged $6,475 in
finders fees in connection with the Tranche and issued 7,000
finders warrants; the finders warrants have the same terms and
conditions as the warrants issued in the Offering.
The securities issued in the Offering are subject to a four
month hold period, expiring on August 29,
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 1,562,000
Units and 1,351,351 FT Units for a total subscription price of
$1,000,000. Vernon Frolick, a Director of the Company,
subscribed for 31,250 Units for a total subscription price of
$10,000. Both BC Ltd and Mr
Frolick acquired the Units and FT Units for investment purposes.
The Offering and the acceptance of the subscription by BC Ltd and
Mr Frolick was approved by unanimous resolution of the board of
directors of the Company with Dr. Fipke and Mr. Frolick 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 Mr Frolick 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.