KELOWNA,
BC, Nov. 22, 2023 /CNW/ - Cantex Mine
Development Corp. (TSXV: CD), (OTCQB: CTXDF) (the
"Company") is pleased to report that a 89.25 metre intersection of
strong mineralization has been encountered at the Main Zone of the
silver-lead-zinc-germanium Massive Sulphide project. The
Company also is closing a final tranche of its financing.
Main Zone Drilling
Hole YKDD23-285 was the final hole from the fall 2023 drill
program. This hole contained an exceptional intercept from 416.75
to 506 metres depth drilled from pad MZ33 at a -85-degree dip and
166 degree azimuth (see Figures 1 and 2 for a map and cross section
respectively)
Split core from this hole has been submitted to the CF Mineral
Research, an ISO/IEC 17025:2005 accredited laboratory for
preparation prior to being sent to ALS Chemex Laboratories in
North Vancouver for analysis for
silver-lead-zinc. Polished sections will be submitted to the
University of British Columbia Okanagan
for germanium analysis. All of the foregoing results as well
as germanium results from samples already submitted will be
reported when received.
Financings Complete
The Company announces that, further to its news release of
September 20, 2023 and October 19, 2023 announcing a private placement
(the "Offering"), the Company has closed the final tranche of the
Offering ("the Final Tranche") and has received $2,902,120 by the issuance of 6,833,734 flow
through units (the "FT Units") and 3,276,923 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.
Included in the Final Tranche is an investment by Crescat
Capital LLP ("Crescat"), our previously announced strategic
partner. Crescat purchased 1,923,077 Units for total proceeds
of $500,000, bringing their total
holdings to over 3.2 million shares.
Combined with the first tranche, the Offering has resulted in
gross proceeds of $3,823,485 from the
issuance of 8,258,284 FT Units and 5,176,923 Units.
Proceeds from the Final Tranche will be used to fund the
Company's North Rackla Project in the Yukon and for general working capital.
The Company was charged $178,500
in finders fees in connection with the Final Tranche; of this,
$24,500 was paid in cash, with the
remaining $154,000 in fees settled
with the issuance of 592,308 Units at a deemed price of
$0.26/Unit. The Units issued as
settlement of the fees are comprised of 592,308 non-flow through
shares and 296,154 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
674,006 finders warrants, which have the same terms and conditions
as the warrants issued in the Offering.
The securities issued in the Final Tranche are subject to a four
month hold period, expiring on March 17,
2024.
Katherine MacDonald, a Director
of the Company, subscribed for 200,000 Units for a total
subscription price of $52,000.
Ms. MacDonald acquired the Units for investment purposes. The
Offering and the acceptance of the subscription by Ms. MacDonald
was approved by unanimous resolution of the board of directors of
the Company with Ms. MacDonald declaring her 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 Ms. MacDonald was less than $2,500,000.
The Company would also like to clarify that the Spring 2023
financing, which was originally announced on April 17, 2023, closed with only one
tranche. This tranche closed on April
28, 2023, with the Company receiving gross proceeds of
$1,268,500 by the issuance of
1,601,351 flow through units (issued at $0.37/flow through unit) and 2,112,500 non
flow-through units (issued at $0.32/unit), with both flow through units and
non-flow through units including one half of a warrant. Each
whole warrants 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. Please refer to our news
release dated April 28, 2023 for
further information.
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 2.3 kilometres of
strike length and more than 700 metres depth. The mineralization
remains open along strike and to depth. The company is led by Dr.
Fipke CM, the founder of Ekati, Canada's first diamond mine.
Cantex is pleased to report this outstanding intercept and look
forward to the forthcoming drill and germanium results.
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.