CSRNF - Closes $1.29 Million Flow-Through Financing
(TheNewswire)
Toronto, Ontario - TheNewswire – December 30, 2020 – CANSTAR RESOURCESINC. (TSXV:ROX ) & ( OTC:CSRNF) (“ Canstar” or the “Company ”) is pleased to announce that it has completed itspreviously announced non-brokered private placement, consisting of thesale of 3,675,342 flow-through shares (each a “FT Share”) at aprice of $0.35 per FT Share for aggregate gross proceeds of$1,286,369.70 (the “Offering”). Each FT Share is composed of onecommon share of the Company issued on a flow-through basis within themeaning of the Income TaxAct (Canada) (the “Tax Act”).
The Company intends to use the proceeds from theOffering to incur “Canadian exploration expenses” that qualify asa “flow-through mining expenditure” (as such terms are defined inthe Tax Act) on the Golden Baie property, located in southcentralNewfoundland, and the Buchan’s - Mary March property in centralNewfoundland.
In connection with the Offering, the company paidcommissions of an aggregate of $26,736 in cash and 76,388 finderwarrants (“Finder Warrants”). Each Finder Warrant is exercisableat a price of $0.35 per common share for a period of 24 months fromclosing of the Offering. The Offering is subject to certain conditionsincluding, but not limited to, the receipt of all necessary approvalsincluding the approval of the TSX Venture Exchange (“TSXV”) andthe securities regulatory authorities. All securities issued andissuable in connection with the Offering are subject to a hold periodof four months plus one day.
About Canstar Resources Inc.
Canstar is focused on the discovery and development ofeconomic mineral deposits in Newfoundland and Labrador, Canada.Canstar has an option to acquire a 100% interest in the Golden BaieProject, a large claim package (over 62,175 hectares) with recentlydiscovered, multiple outcropping gold occurrences on a majorstructural trend in south-central Newfoundland. The Company also holdsthe Buchans-Mary March project and other mineral explorationproperties in Newfoundland. Canstar is based in Toronto, Canada, andis listed on the TSXV under the symbol ROX and trades on the OTCPKunder the symbol CSRNF.
For further information, pleasecontact:
Rob Bruggeman P.Eng., CFA
President & CEO
Email: rob@canstarresources.com
Phone: 1-416-884-3556
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”. Sinceforward-looking statements are based on assumptions and address futureevents and conditions, by their very nature they involve inherentrisks and uncertainties. Although these statements are based oninformation currently available to the Company, the Company providesno assurance that actual results will meet management’sexpectations. Risks, uncertainties and other factors involved withforward-looking information could cause actual events, results,performance, prospects and opportunities to differ materially fromthose expressed or implied by such forward-looking information.Forward looking information in this 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 all necessaryapprovals. 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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