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Canstar Resources Inc. Announces Non-Brokered Private Placement
TORONTO, ONTARIO--(Marketwired - April 11, 2016) - Canstar Resources Inc. ("Canstar" or the "Corporation") (TSX VENTURE:ROX) is pleased to announce a proposed n
About this update from Canstar Resources Inc.
[{"type":"text","content":"TORONTO, ONTARIO--(Marketwired - April 11, 2016) - Canstar Resources Inc. (\"Canstar\" or the \"Corporation\") (TSX VENTURE:ROX) is pleased to announce a proposed non-brokered private placement financing of up to $82,700 comprising of the sale of flow-through units (the \"FT Units\") and hard-dollar units (the \"HD Units\") at a price of $0.06 per unit, respectively, subject to regulatory approval and closing. Each FT Unit will consist of one flow-through common share and one common share purchase warrant (a \"Warrant\") and each HD Unit will consist of one common share and one Warrant. Each Warrant will entitle the holder to purchase one common share of the Corporation for a period of 24 months after closing at a price of $0.10 in the first year after closing, and $0.175 in the second year after closing if the holder so elects. If the closing price on the TSXV of the common shares equals or exceeds $0.175 per share in the first year after closing, or $0.25 per share in the second year after closing, for a period of 20 consecutive trading days, the Corporation 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 Corporation 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 thirty (30) calendar days from the date of mailing at 4:00 pm Toronto time. 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 October 26, 2015). Further exploration on the Mary March and Nancy April Projects in Newfoundland is under review given current low level of base metal prices. Finders will receive a cash commission equal to five percent (5%) of the aggregate gross proceeds raised, and broker warrants equal to eight percent (8%) of the total number of FT Units sold, with each Broker Warrant at an exercise price of $0.08 entitling the holder to acquire one Unit consisting of one common share and one Warrant for a period of 24 months after closing. On behalf of the Board of Directors, Danniel J. Oosterman, P.Geo, President & CEO Forward-Lookin...