Non-brokered deal oversubscribed; insiders buy 7.52 million shares
By Marisa Wong
Madison, Wis., July 9 - Cantex Mine Development Corp. said it completed its previously announced non-brokered private placement of stock and units, raising C$1.76 million. The deal was oversubscribed, according to a news release.
On June 22, the company priced 24 million flow-through common shares at C$0.05 per share and 8 million units of one common share and one warrant at C$0.05 per unit for planned proceeds of C$1.6 million.
According to the latest release, the company sold an additional 2.72 million flow-through shares and 500,000 units prior to closing.
Each warrant will be exercisable at C$0.10 for five years. The price per share is identical to the June 21 closing share price. The strike price reflects a 100% premium to that price.
Insiders of the company subscribed for 7.52 million shares, the release noted.
Proceeds will be used for claims acquisition, follow-up sampling and drilling on the company's projects, as well as for general working capital purposes.
Kelowna, B.C.-based Cantex is a gold, uranium, nickel, copper, cobalt and platinum exploration company.
| Issuer: | Cantex Mine Development Corp.
|
| Issue: | Flow-through common shares, units of one common share and one warrant
|
| Amount: | C$1,761,000 (increased from C$1.6 million)
|
| Agent: | Non-brokered
|
| Investors: | Insiders for 7.52 million shares
|
| Pricing date: | June 22
|
| Stock symbol: | TSX Venture: CD
|
| Stock price: | C$0.06 at close July 6
|
| Market capitalization: | C$16.7 million
|
|
|
| Shares
|
| Amount: | C$1,336,000
|
| Shares: | 26.72 million (up from 24 million)
|
| Price: | C$0.05
|
| Warrants: | No
|
|
|
| Units
|
| Amount: | C$425,000
|
| Units: | 8.5 million (up from 8 million)
|
| Price: | C$0.05
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Five years
|
| Warrant strike price: | C$0.10
|
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