Business
Canstar Announces Non-Brokered Private Placement Financing
(TheNewswire) Toronto, Ontario - TheNewswire – November 15, 20...
About this update from Canstar Resources Inc.
[{"type":"text","content":"Canstar Announces Non-Brokered Private Placement Financing\n \n \n (TheNewswire)\n \n \n \n \n \n \n \n \n Toronto, Ontario -\n \n \n TheNewswire\n \n \n – November 15, 2021 – CANSTAR\nRESOURCES INC. (TSXV:ROX\n \n \n )\n \n \n &\n \n \n (\n \n \n OTC:CSRNF)\n \n \n (“Canstar” or the\n\"Company\"), is pleased to announce its intention to complete\na non-brokered private placement financing (the “Offering”) for\ntotal gross proceeds of up to $6.0 million, consisting of up to\n11,112,000 flow-through units (“FT Units”) of the Company at a\nprice of $0.315 per FT Unit (the “FT Issue Price”) and up to\n6,411,000 FT Units at a price of $0.39 per FT Unit (the “Premium FT\nIssue Price”). The Company reserves the right to increase the size\nof the Offering, subject to the approval of the TSX Venture Exchange\n(the “Exchange”).\n \n \n \n \n Each FT Unit shall be comprised of one common share of\nthe Company that will qualify as a “flow-through share” (within\nthe meaning of subsection 66(15) of the\n \n \n Income Tax Act\n \n \n (Canada)) (a “FT Share”) and one half of one common share\npurchase warrant (each whole warrant a “Warrant”).\n \n \n \n \n Each Warrant shall entitle the holder to purchase one\ncommon share of the Company at an exercise price of $0.42 for a period\nof 24 months following the closing of the Offering.\n \n \n \n \n The Company will use an amount equal to the gross\nproceeds received by the Company from the sale of the FT Units,\npursuant to the provisions in the\n \n \n Income Tax Act\n \n \n (Canada)(the “Tax Act”), to incur eligible \"Canadian\nexploration expenses\" that qualify as \"flow-through mining\nexpenditures\" as both terms are defined in the\n \n \n Income Tax Act\n \n \n (Canada) (the \"Qualifying Expenditures\") on or before\nDecember 31, 2022, and to renounce all the Qualifying Expenditures in\nfavour of the subscribers of the FT Units effective December 31,\n2021.\n \n \n The Company intends to use such proceeds\nprimarily on the Golden Baie property, located in south Newfoundland,\nand the Buchan’s-Mary March property in central Newfoundland.\n \n \n \n \n In connection with the Offering, the company may pay\nfinders’ fees in...