Business
Canstar Resources Closes C$210,000 Non-Brokered Private Placement
TORONTO, Feb. 14, 2020 (GLOBE NEWSWIRE) -- CANSTAR RESOURCES INC. (TSXV:ROX) (“Canstar Resources” or the “Company”) is pleased to announce that it has completed
About this update from Canstar Resources Inc.
[{"type":"text","content":" TORONTO, Feb. 14, 2020 (GLOBE NEWSWIRE) -- CANSTAR RESOURCES INC. (TSXV:ROX) (“Canstar Resources” or the “Company”) is pleased to announce that it has completed a non-brokered private placement of 4,200,000 common shares of the Company (each a \"Common Share\") at C$0.05 per Common Share for total gross proceeds of C$210,000 (the \"Offering\"). The Company intends to use the net proceeds raised from the Offering for general working capital purposes. The Offering is subject to the final approval of the TSX Venture Exchange. Securities issued pursuant to the Offering shall be subject to a four-month plus one day hold period commencing on the day of the closing of the Offering under applicable Canadian securities laws. The Common Shares are offered by private placement only (and without the use of an offering memorandum as defined in OSC Rule 14-501). No prospectus has or will be filed with any securities regulatory authority to qualify the Common Shares for distribution to the public. Related Party Transaction In connection with the Offering, certain directors, officers and other insiders of the Company (collectively, the “Insiders”) have acquired 3,500,000 Common Shares. The participation of Insiders in the Offering constitutes a “related party transaction”, as such terms are defined by Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company is relying on an exemption from the formal valuation requirements of MI 61-101 available on the basis of the securities of the Company not being listed on specified markets, including the Toronto Stock Exchange, the New York Stock Exchange, the American Stock Exchange, the NASDAQ or certain overseas stock exchanges. The Company is also relying on the exemption from minority shareholder approval requirements under MI 61-101 as the fair market value of the participation in the Offering by the Insiders does not exceed 25% of the market capitalization of the Company. About Canstar Resources Inc. Canstar Resources is a Canadian mineral exploration and development company, with the objective of creating shareholder value through discovery and development of economic mineral deposits. Currently, Canstar Resources is focused on the advancement of its flagship Buchans-Mary March project and other mineral exploration properties in New...