Business
Canstar Closes $5.2 Million Flow-Through Financing
(TheNewswire) Toronto, Ontario - TheNewswire – December 8, 202...
About this update from Canstar Resources Inc.
[{"type":"text","content":"Canstar Closes $5.2 Million Flow-Through Financing\n \n \n (TheNewswire)\n \n \n \n \n \n \n \n \n Toronto, Ontario -\n \n \n TheNewswire\n \n \n – December 8, 2021 – CANSTAR RESOURCES\nINC. (TSXV:ROX\n \n \n )\n \n \n &\n \n \n (\n \n \n OTC:CSRNF)\n \n \n (“\n \n \n Canstar” or the “Company\n \n \n ”)\n \n \n is pleased to announce that it has completed its\npreviously announced non-brokered private placement, consisting of the\nsale of 14,412,471 flow-through units (each a “FT Unit”) at a\nprice of $0.315 per FT Unit and 1,724,138 premium flow-through units\n(each a “Premium FT Unit”, and together with the FT Units, the\n“Offered Units”) at a price of $0.39 per Premium FT Unit for\naggregate gross proceeds of $ $5,212,342.19 (the “Offering”). Each\nFT Unit is composed of one (1) common share (“Share”) of the\nCompany issued on a flow-through basis within the meaning of the\n \n \n Income Tax Act\n \n \n (Canada) (the “Tax Act”) and one-half of one (0.5) Share\npurchase warrant (each whole warrant, a \"Warrant\").  Each\nWarrant will entitle the subscriber to purchase one (1) additional\nShare at a price of $0.42 until the second (2\n \n \n nd\n \n \n ) anniversary\nof the closing date of the Offering (the \"Expiry\nDate\").\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 Offered 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 Offered 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 closing of the Offering, the\nCompany paid commissions to certain finders of an aggregate of\n$286,026.06 in cash and 908,019 finder warrants (ea...