VANCOUVER, BC, April 22,
2022 /CNW/ - Callinex Mines Inc. (the "Company"
or "Callinex") (TSXV: CNX) (OTCQX: CLLXF) is pleased to announce
that it has closed its fully subscribed non-brokered private
placement for gross proceeds of C$6.24
million (the "Offering"). The Offering will be
used to fund the ongoing drill campaign at the Rainbow Deposit,
Pine Bay, Manitoba.
Max Porterfield, President and
CEO stated, "The Company is now fully funded and focused on the
continued expansion and publication of a 43-101 resource estimate
on the high-grade copper, gold, silver and zinc rich Rainbow
Deposit at the Company's Pine Bay Project in Manitoba. We are grateful for the support from
the new and existing shareholders in this financing which allows us
to continue to execute on our long-term objectives."
The Offering consisted of (i) 453,446 hard dollar units (the
"HD Units") at a price of C$3.11 per HD Unit (the "HD Offering
Price") for gross proceeds of C$1,410,217; and (ii) 966,000 Manitoba flow-through units (the "FT
Units") at a price of C$5.00 per
FT Unit (the "MB FT Offering Price") for gross
proceeds of $4,830,000.
Each HD Unit consists of one common share and one-half of one
transferable common share purchase warrant (each whole such common
share purchase warrant, a "Warrant"). Each FT Unit consists
of one flow-through common share and one-half of one transferrable
Warrant to be issued on a non-flow-through basis. Each Warrant
shall be exercisable into one additional common share (a
"Warrant Share") for two (2) years from closing at an
exercise price of C$4.75 per Warrant
Share.
The Warrants will be subject to an acceleration clause whereby
if at any time the volume-weighted average trading price of the
common shares exceeds C$6.25 for a
period of 15 consecutive trading days, the Company is entitled, as
its option, to accelerate the expiry date of the Warrants by
delivering written notice to the holders of the Warrants, to a date
that is not less than 30 days after such notice is given.
The securities issued under the Offering are subject to
restrictions on resale expiring on August
22, 2022. The Company paid finders a fee totaling
$167,165.
The gross proceeds from the sale of FT Units will be used by the
Company to incur eligible "Canadian exploration expenses" that will
qualify as "flow-through mining expenditures" as such terms are
defined in the Income Tax Act (Canada) (the "Qualifying Expenditures")
related to the Pine Bay Project, Manitoba. All Qualifying Expenditures will be
renounced in favour of the subscribers of the Flow-Through Shares
effective December 31, 2022. The net
proceeds from the sale of the HD Units will be used by the Company
for working capital and general corporate purposes.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy any of the securities in
the United States. The securities
have not been and will not be registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities Act") or
any state securities laws and may not be offered or sold within
the United States or to U.S.
Persons unless registered under the U.S. Securities Act and
applicable state securities laws or an exemption from such
registration is available.
About Callinex Mines
Inc.
Callinex Mines Inc. (TSXV: CNX) (OTC: CLLXF) is
advancing its portfolio of base and precious metals rich deposits
located in established Canadian mining jurisdictions. The focus of
the portfolio is highlighted by the rapidly expanding Rainbow
Discovery at its rich VMS Pine Bay Project located near existing
infrastructure in the Flin Flon Mining District. The second asset
in the portfolio is the Nash Creek Project located in the VMS rich
Bathurst Mining District of New Brunswick. A 2018 PEA
generates a strong economic return with a pre-tax IRR of 34.1%
(25.2% post-tax) and NPV8% of $230 million ($128 million post-tax)
at $1.25 Zinc. The third asset, 100% owned Point
Leamington Deposit in Newfoundland, is located in one of the
richest VMS and Gold Districts in Canada. Callinex prepared a
pit constrained Indicated Mineral Resource of 5.0 Mt grading 2.5
g/t AuEq for 402 koz AuEq (145.7 koz gold, 60.0 Mlb copper, 153.5
Mlb zinc, 2.0 Moz silver, 1.5 Mlb lead), an pit constrained
Inferred Mineral Resource of 13.7 Mt grading 2.24 g/t AuEq for
986.5 koz AuEq (354.8 koz gold, 110.2 Mlb copper, 527.3 Mlb zinc,
6.2 Moz silver, 7.0 Mlb lead) and an out-of-pit Inferred Mineral
Resource of 1.7 Mt grading 3.06 g/t AuEq for 168.5 koz AuEq (65.4
koz gold, 13.3 Mlb copper, 102.9 Mlb zinc, 1.4 Moz Ag, 2.6 Mlb
lead).
Neither the 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.
Some statements in this news release contain forward-looking
information. These statements include, but are not limited to,
statements with respect to future expenditures. These statements
address future events and conditions and, as such, involve known
and unknown risks, uncertainties and other factors which may cause
the actual results, performance or achievements to be materially
different from any future results, performance or achievements
expressed or implied by the statements. Such factors include, among
others, the ability to complete the proposed drill program and the
timing and amount of expenditures. Except as required under
applicable securities laws, Callinex does not assume the obligation
to update any forward-looking statement.
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SOURCE Callinex Mines Inc.