CSRNF - Canstar Closes Final Tranche of $2.0M Private Placement
(TheNewswire)
Toronto, Ontario - TheNewswire - October 1, 2020 - CANSTARRESOURCES INC. (TSXV:ROX) (" Canstar Resources " or the" Company ") is pleased to announce that it has closed the secondand final tranche (the " Second Tranche ") of the non-brokeredprivate placement announced on September 2, 2020 (the" Offering ").
The Second Tranche consisted of the sale of 9,523,810units (" Units ") at a price of $0.1575 per Unit for aggregate grossproceeds of $1,500,000. Each unit is composed of one (1) common share(" Share ") in the capital of the company and one (1) Sharepurchase warrant (" Warrant ") at an exercise price of $0.21per Warrant for a period of two years from the date ofissuance.
The first tranche of the Offering, which closed onSeptember 15, 200, consisted of the sale of 4,761,920 units (each a"Part & Parcel Unit") at a price of $0.105 per Part& Parcel Unit for gross proceeds of $500,001.60. Each Part &Parcel Unit was composed of one (1) Share and one (1) Warrant.
The Company intends to use the net proceeds raised fromthe Second Tranche for general corporate purposes, working capital,and exploration expenses on the Company's properties in Newfoundland,including Buchan's/Mary March, Daniel's Harbour, and GoldenBaie.
Frances Kwong, Dustin Small, and ChristianKargl-Simard, directors and/or officers of an insider of the Companyacquired an aggregate of 385,700 Units in the Second Tranche of theOffering for aggregate proceeds of approximately $60,747.75, whichparticipation constituted a "related party transaction" asdefined under Multilateral Instrument 61-101 Protection of MinoritySecurity Holders in Special Transactions (" MI 61-10 1").Such participation is exempt from the formal valuation and minorityshareholder approval requirements of MI 61-101 as neither the fairmarket value of the Part & Parcel Units acquired by the insiders,nor the consideration for the Part & Parcel Units paid by suchinsiders, exceed 25% of the Company's market capitalization.
In connection with the closing of the Second Tranche,the Company paid finder fees to eligible finders of an aggregate of$14,175.00 and 90,000 warrants to purchase Units at a price of $0.1575per Unit. All securities issued and issuable pursuant to the Offeringare subject to the applicable statutory hold period of four months andone day from the closing. The Offering is subject to the finalapproval of the TSX Venture Exchange.
About Canstar Resources Inc.
Canstar Resources is a mineral exploration anddevelopment company focused on creating shareholder value throughdiscovery and development of economic mineral deposits in Newfoundlandand Labrador, Canada. Canstar is in the process of completing anoption agreement to acquire a 100% interest in the Golden Baie Projectin south Newfoundland, a large claim package (660 km 2 ) with recentlydiscovered, multiple outcropping gold occurrences. The Company alsoholds the Buchans-Mary March project and other mineral explorationproperties in Newfoundland. Canstar Resources is based in Toronto,Canada and is listed on the TSX Venture Exchange and trades under thesymbol ROX-V.
For further information, pleasecontact:
Rob Bruggeman P.Eng., CFA
President & CEO
Email: rob@canstarresources.com
Phone: 1-416-884-3556
www.canstarresources.com
Forward-Looking Statements
Neither TSX Venture Exchange nor itsRegulation Services Provider (as that term is defined in the policiesof the TSX Venture Exchange) accepts responsibility for the adequacyor accuracy of this release.
This News Release includes certain"forward-looking statements" which are not comprised ofhistorical facts. Forward-looking statements include estimates andstatements that describe the Company's future plans, objectives orgoals, including words to the effect that the Company or managementexpects a stated condition or result to occur. Forward-lookingstatements may be identified by such terms as "believes","anticipates", "expects", "estimates","may", "could", "would","will", or "plan". Since forward-lookingstatements are based on assumptions and address future events andconditions, by their very nature they involve inherent risks anduncertainties. Although these statements are based on informationcurrently available to the Company, the Company provides no assurancethat actual results will meet management's expectations. Risks,uncertainties and other factors involved with forward-lookinginformation could cause actual events, results, performance, prospectsand opportunities to differ materially from those expressed or impliedby such forward-looking information. Forward looking information inthis news release includes, but is not limited to, the Company'sobjectives, goals or future plans, statements, exploration results,potential mineralization, the estimation of mineral resources,exploration and mine development plans, timing of the commencement ofoperations and estimates of market conditions, as well as theanticipated size of the Offering, the Offering price, the anticipatedclosing date and the completion of the Offering, the anticipated useof the net proceeds from the Offering and the receipt of allnecessary approvals. Factors that could cause actual results to differmaterially from such forward-looking information include, but are notlimited to failure to identify mineral resources, failure to convertestimated mineral resources to reserves, the inability to complete afeasibility study which recommends a production decision, thepreliminary nature of metallurgical test results, delays in obtainingor failures to obtain required governmental, environmental or otherproject approvals, political risks, inability to fulfill the duty toaccommodate First Nations and other indigenous peoples, uncertaintiesrelating to the availability and costs of financing needed in thefuture, changes in equity markets, inflation, changes in exchangerates, fluctuations in commodity prices, delays in the development ofprojects, capital and operating costs varying significantly fromestimates and the other risks involved in the mineral exploration anddevelopment industry, an inability to complete the Offering on theterms or on the timeline as announced or at all, an inability topredict and counteract the effects of COVID-19 on the business of theCompany, including but not limited to the effects of COVID-19 on theprice of commodities, capital market conditions, restriction on labourand international travel and supply chains, and those risks set out inthe Company's public documents filed on SEDAR. Although the Companybelieves that the assumptions and factors used in preparing theforward-looking information in this news release are reasonable, unduereliance should not be placed on such information, which only appliesas of the date of this news release, and no assurance can be giventhat such events will occur in the disclosed time frames or at all.The Company disclaims any intention or obligation to update or reviseany forward-looking information, whether as a result of newinformation, future events or otherwise, other than as required bylaw.
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