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Canstar Resources Inc. Announces Closing of Second and Final Tranche of Non-Brokered Private Placement
TORONTO, ONTARIO--(Marketwired - Dec. 30, 2015) - Further to its news release dated December 23, 2015, Canstar Resources Inc. ("Canstar" or the "Company")(TSX V
About this update from Canstar Resources Inc.
[{"type":"text","content":" TORONTO, ONTARIO--(Marketwired - Dec. 30, 2015) - Further to its news release dated December 23, 2015, Canstar Resources Inc. (\"Canstar\" or the \"Company\")(TSX VENTURE:ROX) is pleased to announce the closing of a second and final tranche of a non-brokered private placement financing (the \"Offering\") previously announced on December 9, 2015. The Company issued 570,000 flow-through units (the \"Units\") at $0.06 per Unit for gross proceeds of $34,200. Each Unit consisted of one common share issued on a flow-through basis and one common share purchase warrant. Each warrant entitles the holder to purchase one common share of the Company for a period of 24 months after closing of the Offering at a price of $0.10 in the first year after closing of the Offering, and $0.175 in the second year after closing of the Offering if the holder so elects. When the closing price on the TSXV of the shares equals or exceeds Cdn. $0.175 per share in the first year after closing of the Offering, or Cdn. $0.25 per share in the second year after closing of the Offering, for a period of 20 consecutive trading days, the Company has the right to accelerate the expiry date of the Warrants. To exercise this right, within 30 days of the occurrence of an acceleration event, the Company must give written notice to the holder by ordinary prepaid mail, in which case the expiry date of the Warrants is accelerated to the date that is 30 calendar days from the date of mailing at 4:00 pm Toronto time. In connection with the closing of the Offering, a 5% finder's fee was paid in cash to an eligible finder and 29,600 finder's warrants (\"Finder's Warrants\") were issued equal to 8% of the number of Units placed by the eligible finder pursuant to the Offering. Each Finder's Warrant entitles the holder to acquire one Unit for $0.06 until December 30, 2017. All securities issued with respect to the Offering are subject to a hold period which expires four months and one day after closing. The proceeds of the private placement will be used for exploration on the Company's 100%-owned Kenora Gold Project (Ontario) and will follow up on recent encouraging results that indicate the potential for an extensive gold system within the property (see News Release dated December 3, 2015). Further exploration on the Mary March and Nancy April Projects in Newfoundland is under re...