KELOWNA,
BC, Dec. 7, 2023 /CNW/ - Cantex Mine
Development Corp. (TSXV: CD) (OTCQB: CTXDF) (the "Company")
announces that, further to its news release of December 5, 2023 announcing a private placement
(the "Offering"), the Company closed the first tranche of the
Offering ("the Tranche") and has received $1,419,990 by the issuance of 4,666,633 flow
through units (the "FT Units") and 76,923 non flow-through units
(the "Units"). FT Units were issued at $0.30 per FT Unit and Units were issued at
$0.26 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
$0.39 for a term of two years from
closing.
Proceeds from the Tranche will be used to fund the Company's
North Rackla Project in the Yukon
and for general working capital. The Company is looking
forward to closing an upcoming second tranche of the Offering.
The Company was charged $98,000 in
finders fees in connection with the Tranche, which was settled with
the issuance of 376,920 Units at a deemed price of $0.26/Unit. The Units issued as settlement of the
fees are comprised of 376,920 non-flow through shares and 188,460
warrants; the warrants are exercisable for a period of two years
from issuance and have an exercise price of $0.39. The Company also issued 376,920
finders warrants, which have the same terms and conditions as the
warrants issued in the Offering. All warrants issued as part
of the finders fee are non-transferable.
The securities issued in the Offering, including the finder's
warrants, are subject to a four month hold period, expiring on
April 8, 2024.
Vernon Frolick, a Director of the
Company, subscribed for 76,923 Units for a total subscription price
of $20,000. Mr. Frolick
acquired the Units for investment purposes. The Offering and the
acceptance of the subscription by Mr. Frolick was approved by
unanimous resolution of the board of directors of the Company with
Mr. Frolick declaring his interest 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 Mr. Frolick was
less than $2,500,000.
About Cantex Mine Development Corp.
Cantex is focused on its 100-per-cent-owned, 20,000-hectare
North Rackla project located 150 kilometres northeast of the town
of Mayo in Yukon, Canada, where
significant massive sulphide mineralization has been discovered.
Over 60,000 metres of drilling has defined high-grade
silver-lead-zinc-germanium mineralization over 2.35 kilometres of
strike length and over 700 metres depth. The mineralization remains
open along strike and to depth. The company is led by Dr. Fipke,
the founder of Ekati, Canada's
first diamond mine.
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.