Callinex Mines Inc. intends to complete a non-brokered private placement (the offering) of up to 2 million units (a unit) at a price of CAN$0.50 per unit for gross proceeds of up to CAN$1 million.
Each unit will consist of one flow-through common share and one-half of one non-flow-through share purchase warrant, with each whole warrant entitling the holder to purchase one additional share at a price of CAN$1 per share for a period of two years from the date of issue.
The proceeds of the offering will be used to conduct exploration activities on its exploration portfolio in the Flin Flon and Bathurst mining districts.
Callinex anticipates that insiders will subscribe for a total of 240,000 units for total proceeds of CAN$120 000. The issuance of units to insiders is considered a related party transaction subject to Multilateral Instrument 61-101. Callinex intends to rely on exemptions from the formal valuation and minority shareholder approval requirements provided under sections 5.5(a) and 5.7(a) of Multilateral Instrument 61-101 on the basis that the participation in the private placement by the insiders will not exceed 25% of the fair market value of the company’s market capitalisation.
All securities issued under the offering will be subject to a 4 month hold period from the date of completion.
Callinex also announces that it has granted a total of 565 000 stock options to its directors, officers, employees and consultants. The stock options have a 5 year term, are exercisable at $0.50 per share and subject to certain vesting requirements.
Read the article online at: https://www.globalminingreview.com/exploration-development/25092019/callinex-announces-flow-through-financing-to-advance-its-exploration-portfolio/