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Canterra Minerals Announces Closing of Oversubscribed Private Placement
Vancouver, British Columbia--(Newsfile Corp. - April 24, 2023) - Canterra Minerals Corporation (T...
About this update from Canterra Minerals Corporation
[{"type":"text","content":"Canterra Minerals Announces Closing of Oversubscribed Private PlacementVancouver, British Columbia--(Newsfile Corp. - April 24, 2023) - Canterra Minerals Corporation (TSXV: CTM) (OTCQB: CTMCF) (\"Canterra\" or the \"Company\") announces that it has closed its oversubscribed, previously announced non-brokered private placement financing (the \"Offering\") (see news releases dated March 29, 2023 and April 14, 2023) for gross proceeds of C$1,150,000.Pursuant to the Offering, Canterra issued (i) 20,783,600 units of the Company (\"Units\") at a price of C$0.05 per Unit; and (ii) 1,847,000 common shares of the Company that will qualify as \"flow-through shares\" for the purposes of the Income Tax Act (Canada) (\"FT Shares\") at a price of C$0.06 per FT Share. Each Unit consists of one common share of the Company (which shall not be a \"flow-through share\") and one common share purchase warrant (a \"Warrant\"), with each Warrant entitling the holder thereof to acquire one additional common share of the Company at an exercise price of C$0.075 until April 24, 2028.The net proceeds from the sale of Units will be used for the planning and resumption of exploration at the Company's gold and base metals projects located in Newfoundland, and for general working capital purposes. The gross proceeds from the sale of FT Shares will be used for exploration expenses on the Company's mineral properties in Newfoundland, which will qualify as \"Canadian Exploration Expenses\" and \"flow-through mining expenditures\" as those terms are defined in the Income Tax Act (Canada), which will be renounced to the initial purchasers of the FT Shares with an effective date no later than December 31, 2023.The securities issued pursuant to the Offering are subject to a four month and one day statutory hold period in Canada, expiring on August 25, 2023.In connection with the Offering, Michael Gentile, strategic investor, and Andrew Farncomb, director of the Company, (collectively, the \"Insiders\") have purchased a total of 6,000,000 Units. Michael Gentile purchased 3,000,000 Units. Prior to the closing of the Offering, Michael Gentile held 9,263,925 common shares of Canterra, representing approximately 12.0%. Following the closing of the Offering, Michael Gentile has beneficial ownership of, or control and direction over, 12,263,925 common shares and 3,000,000 W...